Railway Stocks Surge Amid Heavy Investor Interest
Railway-related stocks are experiencing significant growth in the stock market on Monday, thanks to substantial investor buying, resulting in a 20% surge in the stocks of these companies. Companies like Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam (RVNL), Texmaco Rail, and IRCON International are witnessing tremendous enthusiasm from investors.
Impressive Performance of Key Stocks
- Indian Railway Finance Corporation (IRFC): IRFC shares have surged by 20%, reaching Rs 66.78, with the upper circuit limit being triggered. This remarkable performance has propelled the stock to new record highs.
- Rail Vikas Nigam (RVNL): RVNL has also experienced a substantial boom, with its stock trading at Rs 162.05, marking a rise of 17.22%.
- IRCON International: IRCON International’s stock is also displaying impressive growth due to strong investor interest. The stock is currently trading at Rs 133.95, with a gain of 12.85%.
- Other Notable Stocks: Additional railway-related companies such as Texmaco Rail, Titagarh Railsystems, and IRCTC have seen gains of 8.12%, 4.39%, and 2.30%, respectively. RITES stock has gained 1.23% and is trading at Rs 516.55.
Reasons Behind the Surge
The surge in railway-related stocks can be attributed to the government’s plans to invest Rs 5.25 lakh crore in the railway sector between 2024 and 2031. Companies associated with the railway industry are expected to benefit significantly from this investment. This surge follows a recent trend where government-owned company stocks have delivered impressive returns. Notably, defense sector stocks have also witnessed multibagger returns.
It’s worth recalling that Prime Minister Narendra Modi, during his response to the discussion on the trust vote, encouraged investors to consider buying shares of government-owned companies, indicating his confidence in their potential for growth.
Disclaimer: The information provided here is being given for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing money.