Budget 2025: Railway-infra stocks fell down...
To strengthen the country's infrastructure, the government has allocated Rs 11.2 lakh crore for capital expenditure for the financial year 2025-26. In the last financial year 2024-25, the government had allocated Rs 11.11 lakh crore. That is, only 9.8 percent has been increased in the budget for strengthening the infrastructure as compared to last year.
Small budget allocation for capital expenditure
The market has been disappointed by the marginal increase in capital expenditure. Due to this, there has been a big decline in stocks related to railways and infrastructure. In fact, in the last financial year, Rs 11.1 lakh crore was allocated in the capital expenditure item. But after march 2024, the code of conduct was imposed in the country due to the lok sabha elections. In such a situation, the pace of expenditure on capital expenditure has slowed down, due to which the government has failed to spend the entire amount allocated in the budget. In this budget, the government's focus was on increasing consumption and demand. Keeping this in mind, under the new income tax regime, those with an annual income of Rs 12 lakh will no longer have to pay tax. Major changes have also been made in the tax slab in the new tax regime. It is believed that the tax burden on the middle class will be reduced, which will give them more money to spend. This will help in increasing domestic consumption - savings and investment, which will benefit the economy.
Big fall in infra-railway stocks
Due to low budget allocation for capital expenditure for the coming financial year, there has been a sharp decline in infra railway stocks. L&T closed down by 3.02 percent, ABB by 6.24 percent, Cummins india by 4 percent, Siemens by 5.57 percent. Among railway stocks, IRFC closed down by 6.26 per cent, IRCON by 9.52 per cent, rail Vikas Nigam by 9.43 per cent, Texmaco by 8.95 per cent and Railtel Corp by 7 per cent.
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