IRFC, IRCTC to Titagarh Rail: Railway stocks jump as FM Sitharaman announces 7 high-speed rail corridors in Budget 2026

Budget 2026: Railway stocks witnessed an uptick of up to 4% in Sunday's trading session, on February 1, following the announcement of seven new high-speed rail corridors connecting major metros and economic hubs by the Finance Minister Niramala Sitharaman in the Budget 2026.

Following the announcement, RailTel Corporation's stock jumped 4.48% to ₹369.60 on the BSE. Meanwhile, Titagarh Rail Systems and PSU railway stock IRFC were up 3.20% at ₹124. IRCTC stock was higher by 2.07% and RITES by 2.99%.

New railway corridors

The Union Budget announced plans for seven high-speed rail corridors aimed at improving inter-city connectivity and reducing travel time across key economic and population centres in India.

According to the Budget proposals, the planned high-speed rail routes will connect Mumbai to Pune, Pune to Hyderabad, Hyderabad to Bengaluru, Hyderabad to Chennai, Chennai to Bengaluru, Delhi to Varanasi, and Varanasi to Siliguri.

Which railway stocks will be impacted?

Varun Gupta, CEO, Groww Mutual Fund, said that the proposal to develop seven high-speed rail corridors reinforces the government’s focus on railways as a long-term growth engine rather than just a transport utility.

Over time, consistent policy support and execution in this space can translate into healthier balance sheets and more predictable earnings for railway-linked PSUs, he noted.

Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that these corridors aim to drastically cut inter-city travel times, boost regional economic integration, and enhance freight and passenger mobility across key growth belts.

"This initiative dovetails with broader infrastructure and capex priorities, increasing demand for advanced rail technology, civil works, signalling, and related manufacturing. While execution timelines will span years, the corridors could transform connectivity and catalyse ancillary industries, she added.

She sees rail infra and engineering stocks like L&T, Ircon and Rail Vikas Nigam benefiting from this. Meanwhile, Titagarh Wagons and Texmaco Rail & Engineering will be other key beneficiaries. She sees capital goods and metal stocks like BEML, Tata Steel and JMC Projects also benefitting from this scheme.

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