Railway stocks in India are jumping today: What's fueling rally?
What's the story
Stocks of railway companies saw an uptick in today's trading session. The rise came after Indian Railways announced a minor increase in passenger fares, its first revision in years. The new fares, which will come into effect from July 1, 2025, are expected to impact millions of daily and long-distance travelers across the country.
Market response
Texmaco Rail & Engineering shares jump over 4%
Among the railway shares, Texmaco Rail & Engineering witnessed the highest jump, with its shares trading over 4% higher during today's trading session. Other companies like Rail Vikas Nigam Limited (RVNL), Indian Railway Catering and Tourism Corporation (IRCTC), and Jupiter Wagons also saw their share prices rise by 1-2% today.
Additional gains
IRCON International's stocks rise 0.82%
The upward trend was also seen in other railway stocks. IRCON International's shares rose by 0.82% to ₹202.45, while state-owned rail infrastructure company RITES Ltd witnessed a significant jump of 2.39%, taking its stock price to ₹282.45.
Changes
Details of the fare revision
The fare revision, will see a hike of 1p per kilometer for non-AC Mail/Express trains and 2p per kilometer for AC classes. However, the fares for suburban trains and second-class travel up to 500km shall remain unchanged. For journeys more than 500km in second class, the fare will increase by 0.5p/km. Monthly season ticket prices will remain unchanged.