Budget 2026: 7 high speed corridor plan lifts Jupiter Wagons, IRFC and other railway stocks up to 3%

Synopsis

Railway stocks surged up to 3% in a special Sunday trading session following the Union Budget 2026-27 announcement. Finance Minister Nirmala Sitharaman unveiled plans for seven high-speed rail corridors, boosting sentiment for wagon makers, financiers, and technology providers. This initiative is expected to drive significant investment and improve inter-city connectivity across India.

Railway linked stocks rallied up to 3% during the Budget special Sunday trading session after India’s finance minister Nirmala Sitharaman set out plans in the Union Budget 2026–27 to develop seven high speed rail corridors, lifting sentiment across wagon makers, rail financiers and technology providers on expectations of a fresh investment cycle in inter city connectivity.

The BSE and National Stock Exchange held a live trading session on Sunday to coincide with the presentation of the Union Budget 2026–27, drawing attention to railway linked counters, particularly technology and wagon manufacturing stocks. Quadrant Future Tek led the gains, rising 3%. Jupiter Wagons followed with a 1.87% increase. Railway PSUs IRFC and RITES also traded higher, gaining 1.20% and 1.19%, respectively, while RailTel was up 1.08% during the session.

During her Budget speech, Sitharaman announced plans to develop seven high speed rail corridors to act as key growth connectors between major cities, aimed at improving inter city connectivity, reducing travel time and supporting economic activity along key urban and industrial clusters.

The proposed corridors include Mumbai–Pune, Hyderabad–Pune, Hyderabad–Bengaluru, Chennai–Bengaluru, Delhi–Varanasi, Varanasi–Siliguri and others. The government also outlined the plan as part of efforts “to promote environmentally sustainable passenger travel” through high speed rail links connecting major cities.

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Market participants said the Budget’s emphasis on high speed corridors sharpened expectations of stronger order inflows across rolling stock, signalling, rail financing and project execution segments over the medium term.

The proposal announced by Finance Minister Nirmala Sitharaman to develop seven high speed rail corridors represents a structural push towards decongested, high capacity rail infrastructure, said Divyam Mour, Research Analyst, SAMCO Securities, adding that dedicated high speed corridors are likely to accelerate project execution, improve asset utilisation, and unlock large EPC order inflows across track laying, electrification, signalling and station development.

"This is materially positive for railway infrastructure players such as Rail Vikas Nigam Limited and IRCON International Limited, while electrification and civil contractors like KEC International Limited, NCC Limited and Ashoka Buildcon Limited should see sustained order momentum. Financing support from Indian Railway Finance Corporation further strengthens funding visibility for long term rail expansion," said Mour.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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