Rail stocks rally as Sitharaman hikes Budget 2023 allocation to Rs 2.4 lakh crore

Rail stocks, which have been rallying in the run-up to the Budget, were in demand today after Finance Minister Nirmala Sitharaman hiked capex allocation for railways to Rs 2.4 lakh crore.

The move will benefit all EPC based companies, product companies in wagons, signalling, communication and bearings, etc.

RVNL was up 3% to Rs 78.30, Titagarh Wagons was 1% higher at 1.2%, IRCON was trading 1.6% higher at Rs 61.20. KEC International rallied 2.5% to Rs 467.05, while Siemens was up 3.5% to Rs 3,033.90.


Railways is one of the key drivers of the PM GatiShakti scheme and the National Logistics Policy.

“Railways got a big chunk in the Budget 2023-24 as the government's capital outlay of Rs 2.40 lakh crore is 9 times the outlay announced in 2013-14. Similar to industry expectations, the Railway outlay has come at a whopping amount. Railway related stocks namely Titagarh, IRCTC, RVNL, IRCON gain,” said Nisha Harchekar, Head - Equity Research at Fintoo.

Veer Trivedi, Research Analyst, SAMCO Securities, said stocks that would be buzzing post this announcement would be RVNL, CG Power, IRCTC, IRCON L&T, Siemens and BEML.