Why Railway, Defence and Infra stocks are down today?

Railway, defence, and infrastructure stocks faced significant declines after Budget 2025. The budget announced a reduced capital expenditure (capex) target of ₹10.18 lakh crore for FY25, down from ₹11 lakh crore. The capex target for FY26 is ₹11.2 lakh crore, which fell short of market expectations.

Investors were disappointed by the modest increase in capex allocations, affecting stocks in these sectors. Key players like Titagarh Wagons, RITES, Texmaco Rail, RVNL, Ircon International, and Jupiter Wagons saw their stock prices drop. Defence sector stocks like Bharat Dynamics, Garden Reach Shipbuilders, Hindustan Aeronautics, and Bharat Electronics also experienced declines. The infrastructure sector saw declines in companies like IRB Infra, L&T, HG Infra, KNR Construction, Afcons Infra, GR Infra, and NCC.

The market sentiment reflected concerns about the impact of the reduced capex on profitability and growth prospects. The budget’s focus on fiscal prudence and lower-than-expected capex allocations contributed to the negative market reaction.