Indian Railway Stocks Likely To Shoot Ahead Of Union Budget 2025

Union Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2025-26 on Saturday, February 1. Stock market analysts are highlighting railway stocks to consider on Budget Day. On Thursday, January 30, the Indian stock market continued its upward trend. Major indices closed positively, driven by key players like Reliance Industries, HDFC Bank, and Bharti Airtel.

The Nifty 50 index saw a rise of 0.37%, closing at 23,249.50 points compared to the previous session's 23,163.10 points. Similarly, the BSE Sensex index gained 0.30%, ending at 76,759.81 points from the prior close of 76,532.96 points.

Focus on Railway Stocks

Narinder Wadhwa, Managing Director and CEO of Ski Capital Services Ltd., anticipates a fiscal deficit target of 4.5% in the upcoming budget. This target is expected to boost stock market sentiment while balancing fiscal consolidation and growth needs.

Wadhwa stated that the government might focus on high-speed rail projects and modernization efforts to stimulate tourism. "A fiscal deficit target of 4.5% would likely cheer the stock markets, balancing fiscal consolidation with growth needs," said Wadhwa.

Potential Beneficiaries

According to Wadhwa, stocks such as RVNL, IRCON International, and Titagarh Wagons could benefit from these developments in the railway sector.

Rail Vikas Nigam Ltd (RVNL) shares closed at ₹437.05 on Thursday, marking a 2.25% increase from ₹427.45 in the previous session. Over five years, RVNL shares have yielded over 1,600% returns for investors and nearly 48% over one year.

Stock Performance Overview

IRCON International Ltd shares ended Thursday's session at ₹202.60, up by 4.43% from ₹194 previously. Over five years, IRCON has provided investors with nearly 360% returns but has dropped by 13.08% over one year.

Titagarh Rail Systems Ltd shares rose by 1.37%, closing at ₹960.40 compared to ₹947.40 previously. The company's stock has delivered over 100% returns in five years but declined by 11.67% over one year.