Union Budget 2023: Railway stocks witness profit booking!

In the Union Budget, Finance Minister Nirmala Sitharaman announced the highest-ever capital outlay for railways of Rs 2.4 lakh crore, which is nine times the amount of FY14.

Significant gains in financial services and banking stocks helped Indian headline indices start on a brighter note. In the session's opening trades, broader indices outperformed main indices. While the Nifty 50 experienced a significant rally, the benchmark BSE Sensex crossed the critical 60,000 level.

At 3:15 pm, the BSE Sensex surged 0.44%, reaching a level of 59,813. The Nifty 50 index edged down by 0.04% to the 17,664 level. On the Sensex, ITC Ltd, Tata Steel and ICICI Bank were the top gainers, whereas Bajaj Finserv, State Bank of India and IndusInd Bank were the market draggers.

With an estimated 7% growth for the current year, which is the highest among all major economies, India has gained recognition as a shining star. From being the tenth largest economy in the world, India's economy has grown and moved up to the fifth largest in the last 9 years.

The seven budget priorities were inclusive development, reaching the last mile, infra and investment, unleashing potential, green growth, youth power and financial sector.

In the Union Budget, Finance Minister Nirmala Sitharaman announced the highest-ever capital outlay for railways of Rs 2.4 lakh crore, which is nine times the amount of FY14.

The railway sector stocks had been rising in the sessions before the budget day as they would directly benefit from increased allocation in the Union Budget. Despite opening higher, shares of railway companies plunged drastically in the second half of the session as investors booked profits.

Shares of railway sector stocks including Rail Vikas Nigam, Indian Railway Finance Corporation, IRCON International and Jupiter Wagons fell over 4%.