There are some expectations about railway stocks this year.
Railway shares have often seen a boom in the hope of budget. But the year 2025 is quite challenging for railway stocks. The reason for this is that not a single railway share has come in the positive sector since the beginning of the year. While this was not seen in the previous budget-pre-trends. Finance Minister Nirmala Sitharaman Agami will present the country’s general budget on 1 February. There is a discussion that this year’s budget will prove to be helpful in bringing the cool shares on track again from the railway? Some stocks have fallen more than 40% from their respective high levels due to extensive correction in the market.
The condition of shares of railway companies
According to the news, Oriental, IRCON Jupiter Wagons and Titagarh fell nearly 50% from their 52-week high levels, while Rights, BEML, Ramakrishna Forgings, Texmaco Rail, IRFC fell more than 30% from their high levels. According to the news of the Economic Times, on an annual basis, Oriental Rail, Jupiter Wagon, Titagarh Railways, Rights and BEML have all recorded a decline of more than 10%. Meanwhile, IRFC, RailTel Corp, IRCON and some others have declined by more than 5%.
Market condition battered
The reason for the poor condition of railway shares can be considered as a slowdown in the Indian market. The main reason behind this is expensive evaluation and strong boom over the years. Since reaching the summit in September last year, the benchmark Nifty has fallen by about 14% and this year the 50 -share index has already come down more than 3%.
Expectations from the current financial year
There are some expectations about railway stocks this year. There is an indication that the railway sector is expected to get adequate boost in financial year 2026 with an estimated increase of 15-20% in capital expenditure. These include laying new tracks, upgrading existing tracks and commissioning upgraded railway stations. Analysts also expect a boom in order flow in the fourth quarter, which is lower than a slow start in capital expenditure due to delays due to elections in FY 2025.
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