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Why did Rail Vikas Nigam, RailTel Corp and other railway stocks jump up to 5%? Explained

Railway stocks came under renewed buying interest during Monday's trading session, December 22, with RailTel Corporation of India, Rail Vikas Nigam, Ircon International, IRFC and Indian Railway Catering & Tourism Corporation surging anywhere between 1% and 5%. The rally followed the Indian Railways’ announcement of a rationalization of passenger fares on Sunday, with a revised fare structure set to take effect from December 26, aimed at balancing rising operational costs while minimizing the impact on passengers. The revision, effective from Friday, will see fares beyond 215 kilometers in ordinary class increase by one paise per kilometer.

Why did Rail Vikas Nigam, RailTel Corp and other railway stocks jump up to 5%? Explained

Credit: Livemint

Key Highlights

  • In the Mail and Express non-AC categories, the fare hike has been fixed at 2 paise per kilometer, while AC classes will also see a uniform increase of 2 paise per kilometer.
  • The ministry clarified that the increase would have a limited financial impact on passengers.
  • For instance, a 500-kilometer non-AC journey will cost only ₹10 extra under the revised structure.
  • The rationalization is expected to generate an additional ₹600 crore in revenue during the remaining period of this fiscal year.
  • Railways last raised fares on 1 July 2025, increasing fares for ordinary second, sleeper (non-AC), and first-class travel by half a paise per km.
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Sources

  1. Why did Rail Vikas Nigam, RailTel Corp and other railway stocks jump up to 5%? Explained

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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