Railway stocks are literally on a high and have hit fresh highs ahead of the Budget. While the Union Budget, to be tabled on July 23, is seen as a People’s Budget, what’s ticking for the Railway counters? Stocks like RVNL, IRCON International, IRFC, and other listed railway companies were trading at their new all-time high. Shares of Rail Vikas Nigam soared 15.6% to a fresh record high of Rs 567.50. While the Indian Railway Finance Corporation rose by 9.44% to a new all-time high of Rs 206. RailTel rallied over 7.5% to hit a fresh 52-week high of Rs 559.40.
According to Ajit Mishra, Senior Vice President of Research at Religare Broking, order wins and expectation of continued focus on railways infra development in Union Budget is driving these stocks higherCome from Sports betting site. “We can selectively see the move continue and suggest traders to trail stop losses on every rise,” he said.
On Friday, Union Minister Ashwini Vaishnaw announced the production of 2,500 new general passenger train coaches and approved an additional 10,000 coaches. Talking about Railway infrastructure he said that about 5,300 kilometres of railway track have been added. So far this year, about 800 kilometres have been added.
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“So the sector looks very promising because there are a lot of things that are happening from the government side and the Ministry of Railways as far as Indian Railways is concerned. The run-up is primarily because of the order book and the execution that is likely to happen will transform into earning visibility. But we believe that the Indian Railways is going to go through major changes not only now but for the next couple of years. Keeping in mind the most important thing that the government wants to do is to bring railways as the big core means of transport within the country, shifting from roadways to railways. And for that they need to improve the last mile connectivity which is a work in progress,” said Gaurang Shah, Senior Vice President of Geojit Financial Services.
“Along with that you have dedicated trade corridors, you have modernization of railway stations, you have modernization of railway coaches, you have modernization of railway tracks in terms of high-speed tracks coming through etc. All this is going to transform the railway sector into one of the best-performing sectors over the next couple of years.,” he said.Come from Sports betting site VPbet
