The Impact of Government Investments on India’s Stock Markets: Insights from the Indian Railway Sector

Ranbir Bhugra

ABSTRACT 

This paper delves into the significant effect government investments have on the trends within the stock markets present in India, especially those about the railway sector. In a great way, the government's investments, especially in the micro, small, and medium enterprises, the tourism industry, and the agriculture sector, greatly assist and support improvement in economic growth and the stock market at large. This, therefore, is a good study of how related investment data and stock performance metrics bring out in finality the connection exhibited in strategic government funding and positive stock market outcomes of companies like Jindal Steel, SAIL, Tata Steel, and Larsen & Toubro. The paper will, therefore, go on to discuss the investments of Rs 5.25 lakh crores in the railway sector during fiscal year 2024-31 showing the resultant growth of the stock prices and P/E ratios. The study also highlights the importance of key projects, such as Vande         Bharat trains and Mumbai-Ahmedabad high-speed rail, in acting as growth drivers for the company's performance. Overall, the paper will provide some very vital insights into the way government investments act as a driver for development at large and in stock market performance in the Indian railway sector.

The Impact of Government Investments on India’s Stock Markets_ Insights from the Indian Ra.

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