Railway stocks in focus; RVNL, IRFC, IRCON, Titagarh Rail zoom up to 7%

Railway stocks in focus: Shares of railway-related sectors surged as much as 7.27 per cent on the BSE during Thursday's intra-day trade, despite an otherwise weak market sentiment.

Indian Railway Finance Corporation (IRFC), IRCON International, RITES, Rail Vikas Nigam (RVNL), and Titagarh Rail Systems (TRSL) saw gains ranging from 2.45 per cent to 7.27 per cent. In comparison, the BSE Sensex was down 0.51 per cent at 81,083.05 around 11:18 a.m.

The rally in these stocks is attributed to the Union Cabinet's approval of a multi-tracking project for the Ministry of Railways in Uttar Pradesh, estimated to cost RS 2,642 crore. The project is expected to boost railway freight capacity, with an estimated 28 million tonnes of additional freight projected.

“The proposed multi-tracking project will ease operations and reduce congestion, providing essential infrastructural development on the busiest sections across Indian Railways. The project spans the Varanasi and Chandauli districts in Uttar Pradesh,” said a statement by the Union Cabinet.

The new tracks will expand Indian Railways’ network by approximately 30 kilometres, while reducing carbon emissions by 149 crore kilograms—equivalent to planting six crore trees, the cabinet added.

Among individual stocks, Rail Vikas Nigam surged 7.27 per cent to log an intra-day high of RS 514.40 on the BSE and continued to trade higher. IRCON International advanced 3.58 per cent to RS 231.35, Titagarh Rail Systems gained 7.10 per cent to RS 1,212.90, RITES rose 4.30 per cent to RS 318.45, and IRFC shares climbed 2.45 per cent to RS 154.40. Texmaco Rail & Engineering jumped 2.35 per cent to RS 215.35.

In addition, RailTel Corporation of India gained 1.90 per cent to reach an intra-day high of RS 447.10 on the BSE before retreating to trade 1.57 per cent lower. Similarly, Container Corporation of India rose 0.83 per cent to RS 892.95 but was later down by 1.22 per cent. Indian Railway Catering and Tourism Corporation (IRCTC)  shares also saw a brief rise of 0.15 per cent, but fell by 0.51 per cent.