The railway sector had anticipated an 18 to 20 percent increase in budgetary allocation, but stocks fell by up to 11 percent after Finance Minister Nirmala Sitharaman did not mention any major reforms for the sector in this year’s budget.
Following this, there was a high expectation for this year’s Railway Budget as they performed well last year with numerous advancements and achievements generating a good net revenue.
But as per some of the sources, it is said that the Indian Government has likely allocated Rs. 2.55 Lakh Crores for the Railway budget, which is lower than the previous Budget of Rs. 2.62 lakh crore towards modernizing the Indian Railways
Over the Decade, between 2014 and 2024, Indian Railways achieved the electrification of 41,655 Route Kilometers (RKMs), nearly doubling the 21,413 RKMs electrified before 2014. The Railways also recorded an all-time high freight loading of 1,588 million tonnes (MT) in FY 2023-24, a significant increase from 1,095 MT in 2014-15. Along with these freight milestones, Indian Railways reported record total receipts of Rs. 2,56,093 crores for the year, generating a net revenue of Rs. 3,260 crores.
Along with it, they launched India’s Kavach, an Automatic Train Protection (ATP) system launched in 2020, which has been enhancing rail safety through technology that automatically applies brakes when a loco pilot fails to act which deployed across 1,465 route kilometers and integrated into 144 locomotives, including Electric Multiple Unit (EMU) rakes on the South Central Railway.
As per the source, Rs 1,216.77 crore had been spent on the Kavach system by July 24, 2024, with an additional Rs 1,112.57 crore allocated for its implementation in the financial year 2024-25.
The stocks that are likely affected in the day’s trade due to high expectations of the budget are as follows
Indian Railway Finance Corporation Ltd
The stock closed at Rs. 141.40 in Saturday’s session making a low upto 8 percent in the Intrday’s trade.
Railtel Corporation of India Ltd
The stock closed at Rs. 378.65 in Saturday’s session making a low upto 10 percent in the Intraday trade.
Ircon International Ltd
The stock closed at Rs. 200.88 in Saturday’s session making a low upto 10.6 percent in the Intraday trade.
Indian Railway Catering & Tourism Corporation Ltd
The stock closed at Rs. 794.7 in Saturday’s session making a low upto 5.5 percent in the Intraday trade.
Jupiter Wagons Ltd
The stock closed at Rs. 377.65 in Saturday’s session making a low upto 9.5 percent in the Intraday trade.
Titagarh Rail Systems Ltd
The stock closed at Rs. 956 in Saturday’s session making a low upto 10.2 percent in the Intraday trade.
Rail Vikas Nigam Ltd
The stock closed at Rs. 433.55 in Saturday’s session making a low upto 11.6 percent in the Intraday trade.
Texmaco Rail & Engineering Ltd
The stock closed at Rs. 177.99 in Saturday’s session making a low upto 11.9 percent in the Intraday trade.
Written by Sridhar J
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