Railway Stocks Plummet as Budget Disappoints Investors

Railway stocks, including IRFC, RailTel, Titagarh Rail, and RVNL, tumbled over 5% in today's trade, continuing their downward trend since the Union Budget 2025 announcement. The sector's decline is attributed to the unchanged budget allocation of Rs 2.55 lakh crore for FY 2025-26, falling short of market expectations. Investors had anticipated a 15-20% increase in railway funding, but the lack of fresh initiatives and major reforms has led to disappointment. The absence of new train or route announcements further dampened sentiment. This setback follows a period of optimism in the railway sector, with the current downturn wiping out over Rs 400 billion in market capitalization from major railway companies.

 

Source: Financial Express, Moneycontrol