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IRCTC, RVNL, Ircon to IRFC: Why railway stocks are skyrocketing in stock market today?

Railway stocks are witnessing strong buying since early morning deals, despite weakness in the Indian stock market on Monday. Shares of the Indian Railway majors, IRCON International, Rail Vikas Nigam Limited (RVNL), and Indian Railway Finance Corporation (IRFC) witnessed massive upside movement in the Opening Bell. 

The share price of Indian Railway Catering and Tourism Corporation (IRCTC) also increased by nearly 2 percent. Logging over a 12 percent intraday rise, RVNL share price touched a new peak, whereas IRFC share price, recording around a 9 percent intraday rise, climbed to a new peak of ₹206. With an over 7 percent rise, Ircon’s share price also hit a new record high of 334.50 apiece on NSE on Monday.

As reported by the stock market experts, despite a sideways trend on Dalal Street, the railway stocks are rising on Monday. Ashwini Vaishnav disclosed the plans for 2500 new general passenger coaches and 10,000 additional coaches. Not only the addition of new coaches but also the announcement of the production of 50 new high-speed and luxury trains called the Amrit Bharat Trains.

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Triggers for Railway stocks

Discussing the surge in railway stocks, Sandeep Pandey, Founder of Basav Capital, explained, “The rise in railway stocks can be directly attributed to the Minister for Railways’ announcement of 2,500 new general passenger coaches and 1,000 additional coaches. His unveiling of the production of 50 new Amrit Bharat Trains has sparked significant buying on Monday, driving the upward movement in railway stocks.”

Avinash Gorakshkar, Head of Research at Profitmart Securities, shared, “In November 2023, the railway minister announced the introduction of 3,000 new trains in the next five years. This has set the stage for some significant railway infrastructure-related announcements in the upcoming budget on 23rd July 2024. Given the Indian government’s consistent focus on infrastructure since 2014, the market is eagerly anticipating a growth-oriented union Budget 2024 with a special focus on the energy, power, railways, and other infra segments.”

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not The Woke India. We advise investors to check with certified experts before making any investment decisions.

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