shares declined 4.12 per cent to ₹127.73 on Monday afternoon, despite market analysts predicting a traditional pre-budget rally in railway sector stocks.
The stock opened at ₹135 and touched an intraday high of ₹137.17 before sliding to a low of ₹127.43. Trading volumes remained robust with 60.57 million shares worth ₹795 crore changing hands by early afternoon. Sellers dominated the counter with 74 per cent sell orders against 26 per cent buy orders.
Divyam Mour, Research Analyst at SAMCO Securities, noted that railway stocks have historically demonstrated positive returns in the weeks leading up to the Union Budget. His analysis of five years’ data shows companies like IRFC, RVNL, IRCTC and RailTel consistently outperformed as Budget announcements approached, driven by expectations of increased government infrastructure spending.
The analyst highlighted that railway fares have been raised twice this year—only the third increase in five years—improving revenue generation for Indian Railways. This enhanced cash flow could enable higher capital expenditure without additional budgetary support.
IRFC’s broader performance remains mixed. While the stock has gained 9.77 per cent over one week and 9.24 per cent in one month, it has declined 12.17 per cent over the past year and 14.58 per cent year-to-date. The counter faces resistance at its 52-week high of ₹158 and support at ₹108.04.
Market participants anticipate that the upcoming Budget may allocate more funds to railway safety upgrades, freight corridors, and the Kavach anti-collision system.