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Business News/ Markets / Stock Markets/  Budget 2024: IRCTC, IRFC, RVNL to Ircon — Why railway stocks are skyrocketing?
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Budget 2024: IRCTC, IRFC, RVNL to Ircon — Why railway stocks are skyrocketing?

Stock market today: IRCTC share price today touched a new 52-week high while RVNL, IRFC, and Ircon share prices today touched a new lifetime high

Stock market today: Railway stocks are rising because the market is expecting that GoI may continue to remain focussed on the infrastructure sector in the upcoming union budget.Premium
Stock market today: Railway stocks are rising because the market is expecting that GoI may continue to remain focussed on the infrastructure sector in the upcoming union budget.

Budget 2024: Railway stocks have been in an uptrend for a long but it seems that these stocks still possess upside potential. during early morning deals on Friday, shares of Indian Railway Catering and Tourism Corporation (IRCTC), Rail Vikas Nigam Limited (RVNL), Indian Railway Finance Corporation (IRFC) and IRCON International touched a new lifetime highs or 52-week highs.

IRCTC share price today touched a new 52-week high of 958.30 apiece on NSE, RVNL share price ascended to a new lifetime high of 207 per share level, IRFC share price today climbed to a new record high of 114 per equity share while IRCON share price today hit a new peak of 114 on NSE.

According to stock market experts, diversification of business, focus on the infrastructure sector in the upcoming budget 2024, Government of India (GoI) declaring fresh infusion for the development of railway infrastructure and expected strong Q3 results by these companies are one of the major reasons for the recent rally in these railway stocks.

Triggers for railway stocks

On why railway stocks are ascending, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Railway stocks are in an uptrend as GoI has declared a fresh investment of around 7 lakh crore for the development of rail infra. In the upcoming budget, the market is expecting that GoI may continue to focus on the infrastructure sector, which is expected to benefit these railway PSU companies. Apart from this, railway PSUs like IRCTC have diversified their business in recent years, which is expected to help them deliver strong Q3 results 2024. So, these are some combination of factors that are aiding rally in railway stocks."

Advising these railway stockholders to remain vigilant about the next one to two quarters, Saurabh Jain, Vice President — Research at SMC Global Securities said, "PSU companies are expected to remain sideways after the Union budget 2024 due to the fast approaching Lok Sabha elections 2024. Model code of conduct may become effective after the announcement of the date of the Lok Sabha polls. In that case, PSU companies may not be able to maintain the speedy business, which they are getting these days. So, shareholders of these companies are advised to remain informed about the new developments regarding Lok Sabha polls and the upcoming budget 2024."

Saurabh Jain said that the Q3 results of these companies are already discounted by the market and the next one to two quarters may not come as good as that of the recent quarterly numbers. He said that long-term investors should remain patient whereas short-term investors can book profit anytime they want.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 12 Jan 2024, 01:40 PM IST
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