Railway stocks advance as FM hikes allocation

Shares of ten companies operating in railways-related sector rose after Finance Minister Nirmala Sitharaman announced an outlay of Rs 2.4 lakh crore in the Union Budget 2023-24, the highest in almost a decade and four times the last year's budget.

Meanwhile, the S&P BSE Sensex was up 1,040.93 points, or 1.75% to 60,590.83

L&T (up 3.46%), Siemens (up 3.96%), Bhel (up 0.13%), Container Corporation of India (up 0.91%), IRCTC (up 1.21%), IRFC (up 0.61%), Rail Vikas Nigam (up 1.84%), IRCON International (up 0.41%), Hind Rectifiers (up 4.04%) and Kernex Microsystems (India) (up 2.69%) gained.

NELCO (down 0.72%), Texmaco Rail & Engineering (down 3.46%), BEML (down 2.75%), Titagarh Wagons (down 2.03%) fell.

Finance Minister Nirmala Sitharaman has allocated Rs 2.40 lakh crore for railways which is nine times higher than 2013-2014. Capital outlay of Rs 2.40 lakh crore has been provided for Railways; This highest ever outlay is about nine times the outlay made in FY 2013-14, Sitharaman said in her speech in Parliament. This is the highest-ever allocation of funds to the railways.

She added that this allocation will provide cushion for boosting affordable regional connectivity and logistics of cargo freights.

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