Rail Stocks: After a strong rally of 5 sessions, a big fall is being seen in Railway Stocks today. On Monday, heavy selling pressure is being seen in many stocks including major companies like IRFC, RVNL. Shares of Indian Railway Finance Corporation (IRFC) fell by 4.64% to Rs 127.44 on BSE today. Whereas, shares of Rail Vikas Nigam Limited (RVNL) also fell by 3.84% to Rs 373.05. The main reason for this big fall seen in railway stocks today is being said to be profit booking. After a huge rise in shares, many investors usually like to make profits, which puts pressure on prices for some time.
Big fall in shares of IRCON, Jupiter Wagons also
After 5 days of rally, today investors are heavily booking profits, due to which the share prices increased under pressure and fell victim to a huge fall. However, due to the recent fare hike decision and expectations from the upcoming Union Budget, investor interest in railway stocks seems to be increasing. Today, IRCON shares also fell by about 2.1% to Rs 175.10 amid profit-booking. Indian Railway Catering and Tourism Corporation (IRCTC) saw a decline of about 0.5% today, after which its share price fell to Rs 701.60. Shares of Jupiter Wagons fell to Rs 336.35 with loss of up to 3.22%.
The rally came after the passenger fare was increased
Let us tell you that after the government announced increase in passenger train fares last week, there was a strong rise in railway stocks. Railways has announced to increase the fare for the second time in the year 2025. The purpose of this decision of the government is to improve the financial condition of Indian Railways. The government has increased the fare keeping in mind the pockets of the passengers, so that their journey remains affordable and there is not much pressure on their pockets. Regarding the increase in fare, the Railway Ministry had made it clear that this change will be applicable only for ordinary and mail or express trains. There has been no change in sub-urban service and season tickets.
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