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Railway Stocks Pull Back After Five-Day Rally as Fare Hike Lifts Sector

Profit-taking followed gains tied to the Dec 26 passenger fare hike.

Overview

  • IRFC slid intraday by about 4–6% on Dec 29 to lows near Rs 125.75–127.44, with RVNL, Jupiter Wagons and others also easing as investors booked profits.
  • The sector’s five-session rebound added over Rs 66,500 crore in market value, led by Jupiter Wagons (≈+37%), RVNL (≈+27%) and IRFC (>+20%).
  • The fare revision effective Dec 26 raises ordinary and mail/express fares by up to 1–2 paise per km and excludes suburban services and season tickets, with new prices applied to tickets booked from that date.
  • The latest hike is expected to add roughly Rs 600–700 crore to FY26 revenue, after an earlier July increase generated around Rs 700 crore.
  • Analysts kept a bullish technical stance on IRFC, flagging support around Rs 122–125 and resistance near Rs 137–145, while Q2 FY26 net profit rose 10.2% year on year as operating revenue fell 7.6%.