Shares of railway companies, including Titagarh Wagons, RVNL, and Jupiter Wagons, gained up to 7% on 1 February ahead of the Union Budget, as investors anticipated continued government focus on the sector under the ‘Make in India’ initiative.

Other railway stocks, such as Titagarh Rail Systems, BEML, RITES, Texmaco Rail & Engineering, and RailTel Corporation, were trading 3-7% higher ahead of Finance Minister Nirmala Sitharaman’s budget announcement.

Market analysts expect the government to increase railway allocations by 15-20%, potentially raising the budget to Rs 3 lakh crore. In the Union Budget 2024-25, presented on 23 July, the railway ministry received a record Rs 2.62 lakh crore for capital expenditure, with Rs 2 lakh crore utilized by 5 January. The upcoming budget could see a substantial increase in allocations, further boosting investor confidence in the sector.

The government is reportedly planning to acquire 90 more Vande Bharat trains and allocate funds for high-speed rail testing infrastructure, including a Rs 820 crore dedicated test track in Rajasthan.

Additionally, a major wagon procurement order, valued between Rs 20,000 crore and Rs 25,000 crore, is expected to strengthen freight transportation, aiming to boost Indian Railways’ 27% market share in cargo.

Funding is also likely to focus on 100% electrification of broad-gauge lines and improving rail safety through enhancements in signalling systems, level crossings, and bridges.

At present, Indian Railways operates 136 Vande Bharat trains across the country, with further expansion expected, including the introduction of Vande Metro trains for suburban travel.

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