Railway stocks rallied today ahead of Interim Budget 2024 on expectations of higher capex allocation. Jupiter Wagons, Indian Railway Finance Corporation (IRFC), and Rail Vikas Nigam Limited (RVNL) lead the gains. Axis Securities predicts a 10-15% increase in government capex in FY25.
Currently, various measures have been taken by the GOI, like the introduction of FAME subsidy, state policies, the setting up of EV charging ecosystems, and the rolling out of PLI schemes. For the Union Budget 2024, the industry expects long-term measures that promote EV adoption, such as reduced GST rates, extensions of FAME-II subsidies, and increased infrastructure spending for changing infrastructure.