Railway stocks experienced a significant rise, surging by up to 15 percent to reach new highs on Saturday. This upward movement was fueled by heavy trading volumes, driven by expectations of a higher budget allocation for Indian Railways in the upcoming 2024 Budget. In the current month alone, these stocks have seen an impressive increase of up to 75 percent.
Today, IRCON International shot up by 15 percent in intra-day trading, reaching a new high of ₹261.35, while Rail Vikas Nigam (RVNL) witnessed a 10 percent rally, hitting a record high of 320.75.
Additionally, IRFC (Indian Railway Finance Corp) saw a surge of 9.7 percent, reaching a new peak of ₹176. RailTel and IRCTC also experienced notable gains, reaching their all-time highs of ₹417.80 and 52-week high of ₹1,029.85, respectively.
Despite the strong trend in railway stocks, there is a cautionary note from Aditya Gaggar, Director of Progressive Shares, who suggests that the current momentum is highly stretched. As a result, it is advisable to consider booking partial profits at this point.
Railway Stocks
Check the table below for Railway Stocks details:
| Railway Stocks | ||
|---|---|---|
| Stock | Saturday’s Gain | January Gain |
| IRFC | 8.70% | 77% |
| RVNL | 9.20% | 76% |
| IRCON | 8.10% | 47% |
| IRCTC | 3.50% | 15% |
| Railtel | 6% | 23% |
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IRFC Stock Soars to New Heights
The Indian Railway Finance Corporation (IRFC) continued its impressive performance on the stock market, reaching a new high for the year on Friday.
As of 11:10 am, IRFC shares were trading at over Rs 156 each on the Bombay Stock Exchange (BSE), marking a 7.19% increase. During early trade, the company’s shares peaked at Rs 157.60, setting a fresh 52-week high. Currently, the company’s market capitalization exceeds Rs 2 lakh crore.
Notably, IRFC shares have made a strong start to the calendar year, building on the substantial returns delivered to investors in 2023. In the last five trading sessions alone, the stock has surged by over 28%, contributing to a total gain of 55% for January.
Looking at a broader timeframe, IRFC’s stock has shown remarkable growth, rising by 376% in the past 6 months and 371% over the course of a year.
RVNL Stocks 75% in January
RVNL has achieved an impressive milestone today, completing its 10th consecutive positive session. The stock has shown remarkable growth, experiencing a 75% surge in January alone, following a 10.5% increase in December 2024 and a 6.5% gain in November 2023.
Over the past year, investors have enjoyed substantial returns, with the stock skyrocketing by 279%. Notably, after reaching a record high today, RVNL has surged by an impressive 471% from its 52-week low of ₹56.15 recorded on March 1, 2023.
IRCON Surges 276% in a Year
IRCON has experienced impressive growth, surging by 276% in the past year and 45% in January alone, marking the third consecutive month of gains (with increases of 3.5% in December and 19.3% in November). This remarkable ascent represents a remarkable 421% surge from its lowest point of ₹50.15 on February 27, a year ago.
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RailTel Stocks Records 201% Growth
RailTel, on the other hand, has seen a notable uptrend, recording a 21% increase in January following a 16% rise in December and a substantial 30.5% jump in November. Over the past year, RailTel has delivered exceptional returns, soaring by over 201%. Notably, it has already climbed an impressive 334% from its lowest point of ₹96.20 on March 28, 2023.
What’s Behind Surge in Railway Stock Prices?
Railway Stocks, including IFRC, RVNL, IRCTC, and IRCON International, have been on the rise. This upward trend is attributed to the positive outlook on the railway sector leading up to the Interim Budget 2024.
Many analysts are optimistic that the government will announce increased capital expenditure (capex) for the Indian Railways, aligning with its emphasis on developing infrastructure. Notably, the Union Budget 2023-24 witnessed a significant surge in the capital outlay for Indian Railways, reaching Rs 2.40 lakh crore, marking a substantial 75% increase.
According to an analyst cited in a Business Today report, the impending budget has played a pivotal role in the recent surge in railway stocks. Vishal Periwal, a Sector Analyst (Infra) at IDBI Capital, stated, “With the Budget around the corner, railway stocks have experienced notable gains, possibly fueled by expectations of a substantial budgetary allocation for the sector.”
Analysts anticipate that IRFC will continue to gather momentum as the budget announcement approaches, fueled by expectations of setting new records in budgetary allocations. Despite widespread optimism among market experts regarding IRFC, caution is advised to investors due to the stock currently being in an overbought territory.
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Railway Stocks FAQs
Q.1. Why are railway stocks surging?
Ans. Railway stocks, including IRFC and RVNL, are rising due to anticipation of a higher budget allocation for Indian Railways in the upcoming 2024 Budget.
Q.2. Which stocks have seen notable gains recently?
Ans. IRCON, RVNL, IRCTC, and IRFC have experienced significant surges, reaching new highs driven by positive market sentiments and heavy trading volumes.
Q.3. What cautionary advice is given by analysts?
Ans. Aditya Gaggar, Director of Progressive Shares, suggests caution as the current momentum in railway stocks is considered highly stretched, recommending partial profit booking.
Q.4. How has IRFC stock performed recently?
Ans. IRFC has shown impressive performance, reaching new highs and delivering substantial returns, with a surge of over 55% in January alone.
Q.5. What’s driving the surge in railway stock prices?
Ans. The surge is attributed to the positive outlook on the railway sector ahead of the Interim Budget 2024, with expectations of increased capital expenditure for Indian Railways.
