IRCON, RVNL, RailTel, IRFC, To IRCTC: Railway Stocks In Action Post Cabinet Move; What's Fuelling The Rally?

IRCON, RVNL, RailTel, IRFC, To IRCTC: The Indian Railway stocks showcased some last-minute action during Tuesday's trading session. The surge in railway stocks came after the Union Cabinet approved Rs 24,634 crore multitracking projects across four states to boost rail connectivity.

The Cabinet Committee on Economic Affairs (CCEA) meeting, chaired by Prime Minister Narendra Modi, approved four railway projects affecting infrastructure in Maharashtra, Madhya Pradesh, Gujarat, and Chhattisgarh.

Railway Stocks Rally

IRCON International shares closed 5.91% higher at Rs 182.65 per share on BSE with a market capitalisation of Rs 17,178.52 crore. Rail Vikas Nigam Limited (RVNL) shares gained by 2.24% to end at Rs 354.30 per share. RailTel Corporation shares ended 3.5% higher at Rs 398 per share, IRFC stock surged 1.52% to end at Rs 127.10 per share on BSE. Indian Railway Catering and Tourism Corporation (IRCTC) share price was up 0.94% to close at Rs 716.75 per share on BSE on Tuesday.

IRCTC, IRCON, RVNL, TO IRFC: Why Are Railway Stocks Rising Today?

The CCEA, on Tuesday, approved four major multitracking projects of the Railways Ministry. The total estimated cost of the project stood at Rs 24,634 crore. The project covers around 18 districts across Maharashtra, Madhya Pradesh, Gujarat, and Chhatisgarh.

"Market breadth remained positive, aided by firm global cues and selective buying ahead of quarterly earnings. Telecom and railway stocks led the gains, with railway linked stocks surged sharply after the Cabinet approved projects worth ₹24,000 crore. Banking and energy majors also provided key support to the benchmarks," Vikram Kasat, Head Advisory, PL Capital, reviewed the market closing.

Cabinet Nods Railway Projects

The approved projects include the Wardha-Bhuswal third and fourth lines in Maharashtra, Gondia-Dongargarh fourth line (84 km) spanning Maharashtra and Chhattisgarh; Vadodara-Ratlam third and fourth lines (259 km) in Gujarat and Madhya Pradesh; and the Itarsi-Bhopal-Bina fourth line (237 km) in Madhya Pradesh.

According to the Railways Ministry, these projects will improve connectivity for about 3,633 villages with a combined population of nearly 85.84 lakh, including two Aspirational Districts - Vidisha (Madhya Pradesh) and Rajnandgaon (Chhattisgarh). The enhanced rail infrastructure is expected to ease congestion, streamline operations, and bolster the efficiency and reliability of passenger and freight services.

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