Rail Stocks: Explosive Growth & Sizzling Charts Fuel Mkt Frenzy

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Railway PSU Stocks on a Fast Track: Budget Capex, Mega Orders, and Technical Breakouts Fuel Market Rally

By S JHA

Mumbai, June 5, 2025 — Railway PSU stocks are steaming ahead at full speed, with sector-wide breakouts energizing investor sentiment. According to market analytics platform StockEdge, the rally is being led by a potent combination of factors —ranging from the Union Budget’s robust capital outlay to bullish technical signals and strong momentum scores.

Budget Boost and Order Book Surge

The Centre’s ₹2.65 lakh crore capital expenditure allocation for Indian Railways in Budget 2025–26 is proving to be a major catalyst. Market watchers say this historic capex push is translating into large orders for Railway PSUs, strengthening both balance sheets and growth prospects.

Breakout Rally: Momentum Across the Board

According to StockEdge, railway stocks have not only posted impressive recent gains but are showing technical breakouts confirmed by momentum indicators across 1-month, 3-month, and 6-month timeframes.

Here’s a snapshot of key performers shared by StockEdge on X:

IRCON International Ltd. – Up 12.4% today; Momentum Score: 87/100; Strong across all timeframes; and leading the railway charge with consistent volume-led gains.
Rail Vikas Nigam Ltd. (RVNL) – Up over 20% this week; Momentum Score: 85/100; High investor interest and sustained buying suggest continued upside potential.
RITES Ltd. – Broke out of a classic Ascending Triangle pattern; Momentum Score: 78/100; Technically sound breakout, with bullish confirmation from volume and price action.
IRCTC –Momentum Score: 75/100; Riding the dual wave of infrastructure and consumer demand; Spike in trading activity points to renewed institutional interest.
Indian Railway Finance Corporation (IRFC) _–Currently neutral at 60/100; However, chart setup indicates a potential breakout is in the making.

Market experts note that the railway sector is now among the top-performing segments on the back of strong fundamentals and favourable policy cues. The broader infrastructure push by the government and India’s emphasis on modernizing its transportation backbone are expected to sustain investor interest.

“Railway PSUs are firing on all cylinders. If you’re tracking sectoral breakouts, this is the sector to watch,” StockEdge said in its latest X post.

With momentum building both on the ground and on the charts, analysts believe this could be the start of a long-term uptrend in railway-related equities—making the sector one of the hottest picks for June and beyond.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)