Railway stocks on fast track: These railway stocks surged in response to the unprecedented budget!
In the Union Budget, Finance Minister Nirmala Sitharaman announced the highest-ever capital outlay for railways of Rs 2.4 lakh crore, which is nine times the amount of FY14.
With an estimated 7 per cent growth for the current year, which is the highest among all major economies, India has gained recognition as a shining star. From being the tenth largest economy in the world, India's economy has grown and moved up to the fifth largest in the last 9 years.
The market was anticipating a stronger commitment to public capital expenditure, so the news was welcomed. A 33 per cent increase in capital expenditure will bring it to Rs 10 lakh crore or 3.3 per cent of GDP.
In the Union Budget, Finance Minister Nirmala Sitharaman announced the highest-ever capital outlay for railways of Rs 2.4 lakh crore, which is nine times the amount of FY14.
Railway stocks were on the rise and should be kept on radar as they would directly benefit from increased allocation in the upcoming Union Budget. Majority of railway-related stocks including Rail Vikas Nigam, Indian Railway Finance Corporation, IRCON International and Indian Railway Catering & Tourism Corporation, experienced a strong uptrend with a surge in volume.
Keep a close eye on these scrips for the upcoming sessions!