Five railway stocks including IRFC, RVNL slide up to 14% amid profit booking
Shares of railway PSUs, including IRFC, Rail Vikas Nigam, Ircon International, IRCTC, and RailTel Corporation, plummeted between 7-14% in today's trade due to profit booking.
The remarkable rally in railway PSU stocks, observed in the last few weeks, paused during today's trade on account of profit booking. Shares of IRFC, Rail Vikas Nigam, Ircon International, Indian Railway Catering & Tourism Corporation (IRCTC), and RailTel Corporation of India all plummeted in today's trade between 7-14%.
It is worth noting that these five stocks rallied up to 58% in the last week alone, despite frontline indices finishing the week in red. According to the analysts, the sharp rally in railway stocks was attributed to the anticipation of the Government of India (GoI) unveiling fresh investments for railway infrastructure development in the upcoming 2024 budget.
Additionally, the expected strong Q3 results have contributed to the upward momentum in these stocks.
Meanwhile, Ircon International emerged as the most significant loser among major railway PSUs in today's trade, falling by 13.70% to ₹230 apiece. Despite a substantial rally of 37% in the previous week, the stock, even after today's sharp downturn, still boasts a remarkable 38.62% in January so far.
Zooming out, the stock has displayed an astounding ascent from its low of ₹35.80 apiece in July 2022 to the current value of ₹230, yielding an impressive return of 542%.
Likewise, RailTel Corporation of India witnessed a 12.60% decline in today's trade, reaching ₹388 apiece. Despite the sharp fall, the stock maintains an 18% gain in the current month so far.
Rail Vikas Nigam was another multibagger stock that saw a sharp drop of 10% in today's trade, settling at ₹288.50 apiece. Last week, the stock jumped from ₹204.25 apiece to ₹320 apiece to generate a massive return of 57.61%.
This pushed the company's market capitalisation to ₹66,793 crore. Despite the significant fall in today's trade, the stock still holds a commendable 59% gain for January thus far.
IRFC shares also tumbled 7.53% in intraday trade today, reaching ₹162.75 apiece. Just last week alone, the company's market cap witnessed a stellar rise of ₹82,082 crore as shares gained 55.42%.
Having crossed the ₹one lakh crore market cap milestone in September last year, the company took just four months to achieve the next ₹one lakh crore as its shares continued their winning streak. As of today, the company's market capitalisation stood at ₹2.10 lakh crore. In the current month so far, it still holds a gain of 62%.
Simultaneously, IRCTC shares also saw a 9.20% drop in today's intraday trading, reaching ₹932.50 apiece.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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