The finance minister announcement slew of measures for Railways from new Vande Bharat Trains to One Station-One Product principle. Amid these announcements, the stock related to railways such as IRCTC (Indian Railway Catering and Toursim Corporation) Rail Vikas Nigam, Ircon International, Titgarh Wagons, IRFC among others showed a strength intraday today. 

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Finance Minister allocation Rs 1,40,367.13 crore in Budget FY23 announced various schemes such as: “Integration of Postal and Railways Network facilitating parcel movement; One Station One Product; Extending coverage under Kavach; 400 new generation Vande Bharat Trains among others.” 

 

Most of these railway related stocks have surged between 3-4 per cent intraday. In this, the most sought out stock IRCTC hit day’s high of Rs 900 per share, by surging almost 4 per cent, followed by Rail Vikas Nigam also up around 4 per cent and Titgarh Wagons up 3.5 per cent on the BSE intraday. 

While Ircon International and IRFC each gained by around 2 and 1 per cent respectively on the BSE intraday. 

CapitalVia Global Research in its post budget comment said, “The impact on railway sector will be quite positive as the sector privatisation may also be seen soon to some extent which will open the doors of innovation in the mundane sector policies. Increased operations in this sector will also be a key factor in pushing the growth element.” 

He said, “India plans to manufacture and construct 400 new Vande-Bharat trains, and also intend to build 100 freight terminals in the next three years. The railway will create new items for MSME and will adhere to the ‘One Station, One Product’ principle is positive for the sector.”