Railway stocks post major gains today: Why are IRCTC, RVNL, Ircon, IRFC soaring
Minister for Railways Ashwini Vaishnav announced plans for 2500 new general passengers coaches and 10,000 additional coaches.
Railway stocks witnessed strong buying today (July 8) in early morning deals. Owing to this, shares of the Indian Railway majors, Ircon International, Rail Vikas Nigam Limited (RVNL), and Indian Railway Finance Corporation (IRFC) soared today. Indian Railway Catering and Tourism Corporation (IRCTC) shares gained nearly 2 per cent, RVNL share price rose 12 per cent intraday, IRFC share price climbed to a new peak of ₹206 and Ircon share price logged over 7 per cent rise.
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Railway stocks are rising owing to Minister for Railways Ashwini Vaishnav's disclosure of plans for 2500 new general passengers coaches and 10,000 additional coaches. The minister also announced production of 50 new Amrit Bharat Trains which has fueled the rise in railway stocks ahead of Union Budget 2024.
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Sandeep Pandey, Founder of Basav Capital, said as per Mint, “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.”
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Meanwhile, Avinash Gorakshkar, Head of Research at Profitmart Securities, told the outlet, “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.”