Railway stocks like RVNL, IRFC, and IRCON are rising today. Here's why

Railway PSU stocks including RVNL, RailTel Corporation of India, RITES, IRCON International, and IRFC saw share prices rising up to 10% on Monday

Railway PSU stocks including Rail Vikas Nigam Ltd (RVNL), RailTel Corporation of India, RITES Ltd, IRCON International Ltd, and Indian Railway Finance Corporation Ltd (IRFC ) saw their share prices rising up to 10% on Monday, November 25, 2024.

A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)

RVNL led the gain in railway stocks with its share price gaining by as much as 10% in the morning trade. It had been getting strong order flows with the most recent being a ₹838 crore one from Eastern Railways.

Meanwhile, RailTel also gained about 10% in the same time period after having received a ₹9.93 crore manpower outsourcing service order from the Central Medical Services Society (Cmss) which comes under the Department Of Health And Family Welfare.

Similarly, RITES also gained as much as 10% after having received a ₹531.77 crore railway electrification project for LMG-BPB Section of Lumding Division, N.F Railway.

IRCON International Ltd saw a 7.5% share price uptick after Infomerics Valuation and Rating Private Limited, assigned credit ratings of IVR AAA/ Stable (IVR Triple A withnStable Outlook)/ IVR A1+ (IVR A One Plus) for the Company's bank facilities.

All of this also comes after the Bharatiya Janata Party (BJP) won the Maharashtra state elections which added to the investor confidence, according to a Mint report.

“After the Lok Sabha Election Results, Indian stock market investors went defensive and started looking at FMCG and pharma stocks, the report quoted Mahesh M Ojha, AVP of Research at Hensex Securities, as saying. “However, after the Maharashtra Assembly Election Results, they may start looking at railway, infra, and banking stocks, changing their investment strategy from defensive to aggressive.”