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RVNL, IRFC, and IRCTC led a sharp rally in railway stocks today, with gains up to 9-10%, driven by recent passenger fare rationalization the second in FY26 and pre-Budget 2026 optimism on capex. RVNL hit upper circuit at Rs 376+, amid sector rotation and infra focus.
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Key Highlights
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Market Gains: RVNL surged 8.94-10% to Rs 376.60 (upper circuit), IRFC up 6-7% to Rs 128.87-129.60, IRCTC rose 1.35% to Rs 688.85; peers RailTel (+9.5%), Ircon (+8%) followed suit.
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Fare Hike Catalyst: New revisions in sleeper/ordinary classes effective Dec 2025, projected to boost FY26 revenue by Rs 600 crore (Rs 2,400 crore annualized), enhancing ecosystem earnings visibility.
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Pre-Budget Rally: Investors bet on higher rail capex in Union Budget 2026 for infra, electrification, high-speed projects after 2025 lull.
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Stock-Specific Drivers: IRFC benefits from funding stability; RVNL draws value buyers on order execution; IRCTC gains from ticketing/catering volume uptick.
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Broader Sentiment: PSU rebound and tactical positioning fuel the move, with sustainability tied to policy triggers.
Sources: Times Now, India Today, Economic Times, Business Standard.
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