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Railway Stocks Jump on Budget Bets as New Fares Take Effect

Sustainability will hinge on Budget cues for capex, borrowing plans, execution clarity.

Overview

  • By late morning on December 26, RVNL rose about 9%, IRFC gained roughly 6–7%, and IRCTC advanced around 1–2%, leading a sector-wide rebound.
  • Market participants pointed to pre-Budget positioning and value-focused rotation after a weak 2025 for railway-linked shares.
  • The Railway Ministry’s revised passenger fares took effect on December 26 for ordinary and mail/express services while suburban tickets and season passes remained unchanged, supporting sentiment for IRCTC and the broader ecosystem.
  • IRFC’s advance was linked to improving visibility on its borrowing profile and manageable funding costs, reinforcing its appeal as a policy-backed, long-duration finance play.
  • RVNL’s outsized move reflected expectations for project awards and order inflows, with commentators cautioning that durability will depend on forthcoming Budget allocations, and some reports suggesting a larger rail-safety outlay.