Railway stocks rise 7% ahead of Union Budget 2024; IRFC, Ircon top gainers

Railway firms like IRFC and Ircon International surged over 7 percent ahead of the Union Budget 2024, as industry expectations are on the rise.

Shares of railways related companies witnessed a massive spike on Wednesday, a week before Union Budget 2024.

Railway stocks showed sharp recovery during Wednesday's market session.(HT File)

State-owned Indian Railway Finance Corporation (IRFC) and Ircon International emerged as the top gainers, with the shares of both rallying more than 7 percent.

One of the primary reasons why railway stocks are rallying is anticipation of fresh investments and increased funds for the sector by the Government of India.

Expectations from third quarter earnings are also driving up the share price of these firms.

The shares of Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam (RVNL), Ircon International, Indian Railway Catering & Tourism Corporation (IRCTC), and RailTel Corporation of India all saw a spike of 3-7 percent on January 24, according to Mint.

Ircon International was the top gainer among all railway stock, rallying 7.5 percent on Wednesday. State-run IRFC shares rose 7.2 percent at ₹173.

Railway shares' sharp rise and fall

Railway stock picked up on Wednesday after a steep fall on Tuesday.

The shares of the top five railway firms in the country - IRFC, Rail Vikas Nigam, Ircon International, Indian Railway Catering & Tourism Corporation (IRCTC), and RailTel Corporation of India - have risen around 58 percent in the last week in a volatile market.