IRCTC, IRFC, RVNL, IRCON, RITES, Other Railway Stocks Rally; 2,000 Projects Of Rs 41,000 Crore To Drive Bulls!

Indian railway stock engines accelerated with bulls riding it on Monday. In the early trade, biggies like IRCTC, BEML, RVNL, IRFC, Texmaco, Titgarh, IRCON and RITES traded positive and even moved closer to their 52-week highs. The reason behind the upbeat trend is because of 2,000 projects worth Rs 41,000 crore that are going to be launched at 12.30 pm on February 26.

These stocks were up by around 1% to nearly 4%, The highest upside was seen in RITES, IRCON International, RailTel Corporation, and Texmaco Rail which gained between 3-4%. While Indian Railway's catering giant, IRCTC jumped over 2.6%, Rail Vikas Nigam soared nearly 3%.

Stocks like BEML, Container Corporation, and IRFC, which is the largest railway stock in terms of market value, surged between 1-2%. Titagarh Rail Systems was up by nearly 0.7% on BSE.

The performance comes after when Prime Minister Narendra Modi tweeted on his X handler saying, "Today is a historic day for our Railways!." He added, "At 12:30 PM, 2000 railway infrastructure projects worth over Rs. 41,000 crores will be dedicated to the nation."

According to Modi's tweet, to enhance the travel experience, 553 stations will be redeveloped under the Amrit Bharat Station Scheme. The foundation stones for these stations would be laid. Overbridges and underpasses across India will also be inaugurated.

"These works will further 'Ease of Living' for the people," Modi added.

On February 25, PIB's announcement said that the Prime Minister has often emphasised the importance of providing world-class amenities at railway stations. In a major step in this endeavour, the Prime Minister will lay the foundation stone for the redevelopment of 553 railway stations under the Amrit Bharat Station Scheme.

According to the statement, these stations, spread across 27 States and Union Territories, will be redeveloped at a cost of over Rs. 19,000 crores. These stations will act as 'City Centres' integrating both sides of the city. They will have modern passenger amenities like a roof plaza, beautiful landscaping, intermodal connectivity, improved modern façade, kids' play area, kiosks, food courts, etc. They will be redeveloped as environment friendly and also Divyang friendly. The design of these station buildings will be inspired by local culture, heritage and architecture.

Further, PM will inaugurate Gomti Nagar station in Uttar Pradesh which has been redeveloped at a total cost of around Rs 385 crores. To cater to the increased future passenger footfall, this station has segregated arrival and departure facilities. It integrates both sides of the city. This centrally air-conditioned station has modern passenger amenities like Air Concourse, congestion-free circulation, food courts and ample parking space in the upper and lower basement.

Also, the PM will lay the foundation stone, inaugurate and dedicate to the nation 1500 Road Over Bridges and Underpasses. These Road Over Bridges and Underpasses are spread across 24 States and Union Territories, the total cost of these projects is around Rs. 21,520 crores. These projects will reduce congestion, enhance safety and connectivity, and improve capacity, and efficiency of rail travel.

Railway stocks have been at a booming stage since last year after record-high budgetary allocations. In the interim budget 2024 as well, railway stocks are seen as positive after Finance Minister Nirmala Sitharaman announced that the Union Ministry of Railways has been allocated Rs 2.55 lakh crore for FY25 for the development and transformation of rail infrastructure. This budget allocation is higher by 5.8% from the allocation of Rs 2.41 lakh crore for FY24. That being said, currently, the budget allocation for railways is high and that's a promising trajectory for the companies.