Indian railway, road infra stocks extend decline on 'underwhelming' capex growth

Railtel of India

03/02/2025 08:40

** Shares of Indian railway infra-linked cos Rail Vikas
 RAIV.NS , Ircon International  IRCN.NS , Titagarh Rail
 TITG.NS , Indian Railway Finance Copr  INID.NS , Texmaco Rail
 TEXA.NS , RailTel  RAIT.NS  drop 4%-7%
    ** Road infra-linked cos Larsen & Toubro  LART.NS , IRB
Infra  IRBI.NS , G R Infraprojects  GINF.NS , HG Infra
 HGIN.NS , KEC International  KECL.NS  also lose 4%-7%
    ** FY26 capex set at 11.2 trln rupees ($128.58 bln), up 10%
Y/Y
    ** Infra-related capex growth for FY2026 is underwhelming,
says J.P.Morgan
    ** Adds, railways and road capex growth remains flat for the
fiscal
    ** Says, almost the entire growth in FY26 capex driven by
investment in items unrelated to infra, including investment in
international financial institutions, other economic services
    ** Infra-linked stocks have been biggest losers in benchmark
and sectoral indexes on Saturday and Monday
    ** Nifty infrastructure index  .NIFTYINFR  down 3.2% in two
sessions vs 0.8% drop in Nifty 50


($1 = 87.1075 Indian rupees)

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))