RVNL, IRFC shares fall another 8% as railway stocks continue seeing selling pressure

Shares of state-run railway companies, Rail Vikas Nigam Ltd. (RVNL), Indian Railway Finance Corporation (IRFC) Ltd. IRCON Ltd. and RailTel Corporation Ltd. are down up to 5% on Monday, February 3, as the selling pressure in these stocks continued post the Union Budget presentation on Saturday.

RITES is currently witnessing the biggest fall among its peers, declining 7.7%, while those of RVNL and IRFC are down 5% each. Shares of IRCON are down 4%, while those of RailTel are down 3% on Monday.

The Budget documents showed on Saturday that the allocation to the railways sector has remained unchanged for the railways sector at ₹2.55 lakh crore for financial year 2026. The allocation for financial year 2025 was also at ₹2.55 lakh crore.

The fall in these stocks today can also be attributed to a general negative sentiment across the global equity markets after US President Donald Trump sparked fears of a tariff war post the imposition of tariffs on Canada, China and Mexico on Saturday night.

Railways Minister Ashwini Vaishnaw said that ₹2.64 lakh crore were allocated to the Railways in the budget and that the railways has projects worth ₹4.16 lakh crore to take on.

The minister added that the allocation for Safety will go up to ₹1.16 lakh crore and that the Railways will be crossing 1.6 billion tonnes of Cargo in financial year 2026.

Railway stocks had rallied all of last week ahead of Saturday's budget in anticipation of a higher allocation during the budget.

Shares of RVNL are trading 6% lower and are down nearly 37% from its peak.

Shares of IRFC are down 3.9% at ₹135.75 and the stock is down 41% from its peak of ₹229.

IRCON shares are down nearly 45% from their peak, while those of RailTel too are down nearly 41%.

Shares of RITES are trading 7.7% lower at ₹235.2. The stock is down 43% from its peak.