| Photo credit: BISWARANJAN ROUT/THE HINDU
Shares of Indian Railway Finance Corporation (IRFC) fell 4.12 per cent to ₹127.73 on Monday afternoon even as market analysts predicted 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. Salespeople dominated the counter with 74 percent sell orders versus 26 percent buy orders.
Divyam Mour, research analyst at SAMCO Securities, noted that railway stocks have historically given positive returns in the weeks leading up to the Union Budget. Its analysis of five-year data shows that companies like IRFC, RVNL, IRCTC and RailTel consistently outperformed as Budget announcements approached, driven by expectations of higher government infrastructure spending.
The analyst highlighted that rail fares have been hiked twice this year – only the third increase in five years – improving revenue generation for Indian Railways. This improved cash flow could enable increased capital spending without additional fiscal support.
The overall performance of the IRFC remains mixed. While the stock gained 9.77 percent in a week and 9.24 percent in a month, it has fallen 12.17 percent in the past year and 14.58 percent since the beginning of the year. The counter faces resistance at its 52-week high of ₹158 and support at ₹108.04.
Market participants believe that the upcoming budget may allocate more funds for improving railway safety, freight corridors and the Kavach anti-collision system.
Published on December 29, 2025