Railway stocks: Shares of railway -linked government companies saw a strong decline on Monday 3 February. Companies like RITES, Rail Development Corporation Limited (RVNL), Indian Railway Finance Corporation (IRFC), IRCON International and RailTel Corporation fell to about 8% during the shares. Since the budget, there is a pressure of selling in these shares and today is the second day of the decline. RITES shares saw the biggest decline and it fell by 7.7% during trading. At the same time, RVNL and IRFC shares broke up to 5%. IRCON International shares fell by 4% and RailTel’s shares fell by 3%.
Railways got as much funding in the budget, as it was last year
The main reason behind this decline in railway stocks is being explained to the budget power. In the budget 2025-26 presented on Saturday, the Railways has been given an allocation of ₹ 2.55 lakh crore for FY 2026, which is equal to last year’s budget. Investors hoped that the government would announce more funding for the railways, but it did not happen. This is why investors showed disappointment and selling in the shares of railway companies intensified.
The impact of weak signals from the global market
One of the reasons for the decline in railway stocks is the announcement of new tariffs by former US President Donald Trump. Trump announced a new tariff on Canada, China and Mexico on Saturday night, causing a decline in stock markets around the world today. The impact of this negative atmosphere was also seen on the shares of Indian railway companies.
Railway Minister gave cleanliness, projects worth ₹ 4.16 lakh crore with railway
Railway Minister Ashwini Vaishnav said that in the budget, the Railways has received a total allocation of ₹ 2.64 lakh crore and the Railways has projects worth ₹ 4.16 lakh crore, which will be completed. In addition, the safety budget for the railway has been increased to ₹ 1.16 lakh crore and in FY 2026, the railway freight target is to cross the 1.6 billion tonnes of figures.
Rap fast before budget, now heavy fall
The railway stocks had shown tremendous boom before the budget, as investors hoped that investment in the railway sector would be increased. However, due to weak budget allocation and global uncertainties, there is now a decline.
– RVNL shares are traded down 6% in early trade and have broken up to 37% from their peaks.
– IRFC shares are trading at ₹ 135.75 and it is 41% below its highest level.
– RITES shares are trading at ₹ 235.2, which is 7.7% below today and it has fallen by 43% from its highest level.
– IRCON International shares broke around 4% and they have fallen by 45% from their peaks.
– Railtel’s shares also saw a decline of 3 percent and it has broken up to 41% from its highest level.
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