Railway stocks rally: RVNL, IRFC, BEML gain up to 11%; Here's why

The surge was led by names like Titagarh Rail, RVNL, IRFC, and BEML. Titagarh Rail Systems emerged as the top gainer, jumping 10.72 per cent to close at ₹895.85, followed by RVNL, which climbed 10.45

Railway stocks shine: Railway stocks witnessed strong buying interest on Friday, May 16, 2025, with several counters rallying up to 11 per cent on the last trading day of the week. 

The surge in railway stocks was led by names like Titagarh Rail, RVNL, IRFC, and BEML. Titagarh Rail Systems emerged as the top gainer, jumping 10.72 per cent to ₹895.85, followed by RVNL, which climbed 10.45 per cent to ₹415.20 per share. 

 

Other top gainers included RailTel, which rose 8.52 per cent to ₹392.85; Jupiter Wagons, up 8.20 per cent to ₹420; and Ircon International, which added 8.11 per cent to ₹191.90.

 

Additional railway and related stocks also recorded major gains. BEML advanced 7.01 per cent to ₹3,628.75, IRFC rose 6.75 per cent to ₹139, Texmaco Rail gained 6.55 per cent to ₹164.90, IRCTC moved up 3.35 per cent to ₹811.30, and CONCOR rose 2.31 per cent higher at ₹706.15.

 

What fuelled the rally in railway stocks on Friday?

According to Ravi Singh, senior vice president of retail research at Religare Broking, the rally in railway stocks is part of a larger bullish trend in the Indian stock market, particularly within the SmallCap space, which has seen over 8 per cent gains this week. 

 

Singh explained that this renewed momentum follows two key developments that lifted investor sentiment, including the announcement of an Indo-Pakistan ceasefire and positive progress in the US-India trade talks. These geopolitical and economic boosts have fuelled optimism in small-ticket stocks which are, generally, retail investors' go-to stocks.

 

On the other hand, G Chokkalingam, founder and head of research at Equinomics Research, described the current market movement in railway stocks as a tactical rally and advised investors to book profits at current levels. 

 

“The short- to medium-term outlook for railway stocks remains negative, due to the absence of any substantial increase in budget for the railway sector in FY26,” he added.

 

On an individual stock level, RVNL announced that it has secured an order worth approximately Rs 116 crore from Central Railway. Additionally, the board of the company is scheduled to meet on May 21, to consider and approve the final dividend for FY25.

 

At 12:00 noon, all railway stocks continued to trade higher in the range of 3-11 per cent. In comparison, BSE Sensex was trading 0.38 per cent lower at 82,214.20 level.