The 2024 Budget has mentioned infrastructure as one of its focus areas, leading to a sudden surge in the railway stocks. Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam (RVNL), IRCON International, and Indian Railway Catering and Tourism Corporation (IRCTC) have seen growth in the Monday trade season. These shares range from 1.5% to 14% rise in a single day in the Monday trade session. Indian Railways, being a significant part of infrastructure and building, has an increase in its overall market value.
The railway stocks mentioned above made a good growth in today’s session, IRFC being the leading one with 16.40% of the growth. IRCON International rose in its share price by 3.92% on Monday. IRFC, the leading stock, made a close of Rs. 132, the previous close being Rs. 113.40. The lowest of all was IRCTC, Indian Railway Catering, and Transportation Corporation Ltd. leading to an overall growth of 1.69% on Monday. However, it is still more than any other normal day.
| Stocks Name | Previous Close (12 January 2024) | Today’s Close ( 15 January 2024) | Percentage of Growth in Monday Trade Session |
| IRCON International Limited | Rs. 195.05 | Rs. 202.70 | 3.92% |
| Indian Railway Finance Corporation Ltd (IRFC) | Rs. 113.40 | Rs. 132 | 16.40% |
| Indian Railway Catering And Transportation Corporation Ltd. (IRCTC) | Rs. 951.20 | Rs. 967.25 | 1.69% |
| Rail Vikas Nigam Ltd. | Rs. 203.25 | Rs. 221 | 8.73% |
| Titagarh Rail Systems Ltd. | Rs. 1,048.70 | Rs. 1,070 | 2.03% |
| Texmaco Rail & Engineering Ltd. | Rs. 182.35 | Rs. 190.50 | 4.47% |
The railway stocks are skyrocketing because the Indian Railways planned to float a tender worth Rs. 25,000 crore to procure 60,000 wagons in Q2 2024. These wagons have a different variety depending upon the need of the transportation. These companies’ core purpose is to supply material to the Indian Railways for its development. Thus, the share price tends to rise due to the increased profitability of the company for supplying the wagon’s material and design.
Comparing the monthly growth of the companies, IRFC is still at the top with 39.90% growth in a single month. The stock has made a J-curve in the month. It starts from Rs. 100 on the new year reaching Rs. 132 by mid of the month. The lowest monthly growth was by Titagarh Rail Systems giving 1.08% in the month.