Rs 2.52 Lakh Crore Railway Sector Budget 2024: Keep These Railway Stocks Under Your Radar That Gave Up To 484 Per Cent Returns in Just 1 Year!

What was missing?

The Indian Railway Budget 2024, presented as part of Finance Minister Nirmala Sitharaman's Union Budget speech, fell short of expectations. Despite hopes for significant announcements regarding new trains, upgrades, and safety measures, the minister mostly stuck to the allocations outlined in the February Interim Budget.

Market Reaction and Railway Performance

Following the budget speech, railway stocks witnessed a significant decline. Ircon International fell by 8%, RailTel Corporation by 5.4%, and IRFC, RVNL, and Texmaco Rail by 4-5%. This drop reflects the disappointment among investors who anticipated a more growth-oriented budget for the sector.

However, it's important to note that the Indian Railways have seen a strong upswing in recent times. The Economic Survey 2023-24 highlighted a 77% increase in capital expenditure over the past five years, with investments in new lines, conversions, and doubling of existing tracks.

Key Takeaways

1. No major announcements for the Railway sector in the main budget speech.
2. Record capex of Rs 2.52 lakh crore maintained from the Interim Budget.
3. Focus on safety with the continued rollout of Kavach technology, a train collision avoidance system, as anticipated.
4. Potential for further allocation boost in the future based on the government's prioritization of infrastructure development.

What was missing?

1. Announcements regarding new trains like Vande Bharat sleeper and Vande Metro.
2. Updates on the progress of the Mumbai-Ahmedabad bullet train project and the Namo Bharat initiative.
3. Specific plans for modernization and technological advancements in the railway network.

Looking ahead

The lack of specific announcements in the budget speech doesn't necessarily mean there won't be any progress in the Railways sector. The government's focus on infrastructure development and the record capex allocation suggests continued investments in the coming years. We can still expect to see developments on the projects mentioned in the Economic Survey, such as the introduction of Vande Metro trains and the upgradation of passenger coaches.

Following is the list of Railway Stocks to keep under the radar that gave multibagger returns in just 1 year

In conclusion, the Railway Budget 2024 was a missed opportunity to unveil exciting new plans. However, the maintained record capex allocation provides a foundation for future growth and improvements in the world's fourth-largest railway network.

Disclaimer: The article is for informational purposes only and not investment advice.