Railway stocks cool off after a wild week
After a five-day rally, shares of Indian Railway Finance Corporation (IRFC) and Rail Vikas Nigam Ltd (RVNL) slipped on December 29, 2025—IRFC dropped 4.6% and RVNL fell 3.8%.
This comes right after both stocks saw big gains last week, with RVNL jumping over 26% and IRFC up more than 20%.
Why does this matter?
Railway stocks have been in the spotlight because policy changes—like fare hikes and budget talks—can quickly shake things up.
These shifts affect not just investors but also anyone interested in how public money gets spent on trains and infrastructure.
What caused the drop?
The recent dip is mostly about investors cashing in profits after the government's latest fare hike, which bumped up some ticket prices by ₹5-20.
That move brought a short-term revenue boost for railway companies, but once the excitement faded, many decided to sell.
What's next?
All eyes are now on the upcoming Union Budget for 2026-27.
There's buzz about major funding for rail safety and upgrades—possibly as much as ₹1.3 trillion—which could put railway stocks back in play soon.