Railway psu stocks: After the budget, there is fierce selling in railway stocks. During the last two business days, shares of Indian Railway Finance Corporation (IRFC), Rail Development Corporation Limited (RVNL), IRCON International Limited (IRCON), Rights Limited and Railtel broke up to 15 per cent. The market cap of these companies has decreased by ₹ 40000 crore due to selling.
How much reduced market cap of different companies
IRFC shares closed down by nearly 3% on Monday, while on Saturday, it fell by more than 5%. In the last two months, the market cap of the stock has fallen by more than ₹ 20000 crores.
RVNL shares continued weak performance compared to their pierce and closed down 6.1% on Monday. In the last two trading sessions, the market cap of more than ₹ 15000 crore has fallen by more than ₹ 15000 crore. In addition, shares of IRCON, Railtel and Rites also fell a total of about ₹ 5,000 crore on Monday.
What is for Railways in Budget?
The government has approved a budget allocation of Rs 2.52 lakh crore to the Railways for FY 2025-26. This is almost equal to the amount allocated in 2024–25. The reason for the decline in these shares can also be a negative sentiment in global equity markets. US President Donald Trump announced tariff hike on Canada, China and Mexico on Saturday night, after which the possibility of tariff war has increased.
Railway Minister Ashwini Vaishnav said that in the budget, the Railways have been allocated Rs 2.64 lakh crore and the Railways has projects worth Rs 4.16 lakh crore. The minister said that the allocation for safety will increase to Rs 1.16 lakh crore and the railway will cross 1.6 billion tonnes of cargo in the financial year 2026.
How much are these railway stocks below your high?
Prior to the budget, railway stocks were rapid in the last week in the hope of high allocation. RVNL shares closed down by 6.2 per cent and are about 40% below their high. IRFC shares fall 2.8 per cent to Rs 137.30 and the stock is 41 per cent below its high 229 per cent. IRCON International shares have lost about 45% from their high, while RailTel’s shares have also come down by about 41%. Rights’ shares fell 8.4% to close at Rs 233.2. The stock is 43% below its peak.
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