The majority of railway stocks surged on June 27, with strong buying seen in IRCTC, IRFC, and RITES. Except for Texmaco Rail, all other railway stocks are on a bullish trend. The performance comes ahead of new rules on tatkal tickets and a hike in railway fares, which will come into effect on July 1, 2025. Also, the Railways Ministry has introduced reforms for train controllers.
Railway Stocks Rally:
At the time of writing, IRFC's share price jumped by 1.14% to trade at Rs 141.45 apiece, which was near its intraday high of Rs 142.25 apiece. IRFC is the largest railway company in terms of market share.
Also, IRCTC was near its day's high of Rs 785 apiece, to trade at Rs 784.00 apiece, up by 1.44% with a market cap of Rs 62,720 crore. Also, RVNL gained over 1.5% to hit an intraday high of Rs 405.65 apiece before correcting and trading at Rs 402.55 apiece, up by 0.75% with a market cap of Rs 83,932.48 crore.
RITES stock price also zoomed to hit an intraday high of Rs 284.50 apiece, before slightly correcting to trade at Rs 282.80 apiece up by 1.4% with a market cap of Rs 13,591.47 crore.
Notably, Titagarh Rail Systems outperformed its peers in the early trade by hitting an intraday high of Rs 969.60 apiece, recording a nearly 3.3% upside. However, currently, the stock performed at Rs 949.55 apiece, up by 1.14% with a market cap of Rs 12,798.05 crore.
Meanwhile, RailTel Corporation surged nearly 2% to hit an intraday high of Rs 431.50 apiece, and BEML stock soared by 1.7% to hit an intraday high of Rs 4520.00 apiece. Both the stocks are currently up by 0.4% to 0.5%.
However, the share price of Texmaco declined by over 1% to trade at Rs 176.60 apiece, which was near its day's low.
New Rules From July 1:
Indian railways are likely to hike fares with effect from July 1, 2025. However, the railway fare hike is expected to be minor with non-AC mail and express train charges rising by 1 paise per kilometer. As per reports, the AC class train tickets may see a 2 paise per kilometre hike. Notably, there are no hikes on suburban and monthly season tickets.
Also, Indian Railways announced various changes to the Tatkal ticket booking system. These changes will come into effect from July 1. These are:
1. Aadhaar Authentication for Online Tatkal Bookings: Effective 1st July 2025, Tatkal tickets booked through IRCTC's official website and mobile app will be available only to users authenticated with Aadhaar. Further, Aadhaar-based OTP authentication will become mandatory for Tatkal bookings made online starting 15th July 2025.
2. System-Based OTP Authentication at PRS Counters and Agents: Tatkal tickets booked at computerised Passenger Reservation System (PRS) counters and through authorised agents will require OTP authentication sent to the mobile number provided by the user at the time of booking. This will come into effect from July 15, 2025.
3. Booking Time Restriction for Authorised Agents: To prevent bulk bookings during the critical opening period, authorised ticketing agents of Indian Railways will not be permitted to book opening-day Tatkal tickets during the first 30 minutes of the booking window.
India is projected to account for 40% of the total global share of rail activity by 2050. Also, Indian Railways is developing and creating technology in areas such as signaling and telecommunication with 15,000 kms being converted into automatic signaling and 37,000 kms to be fitted with 'KAVACH', the domestically developed Train Collision Avoidance System, as per IBEF data.
The government of India has focused on investing in railway infrastructure by making investor-friendly policies. It has moved quickly to enable Foreign Direct Investment (FDI) in railways to improve infrastructure for freight and high-speed trains. At present, several domestic and foreign companies are also looking to invest in Indian rail projects, the data added.
Indian railways plan to market semi-high speed 'Vande Bharat' trains by 2025-26 to European, South American, and East Asian markets for exporting 'Made in India' trains, it said.
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