IRCTC, IRFC to RVNL: Why these railway stocks are in focus today
5 min read . Updated: 02 Feb 2023, 10:08 AM IST
Premium- Stocks in focus: Among railway stocks, IRCTC and RVNL still have some steam left, believe experts
Stock market today: Despite weak sentiments on Dalal Street, railway stocks are trading green today. Indian Railway Catering and Tourism Corporation or IRCTC share price surged half per cent in early morning deals while shares of Indian Railway Finance Corp or IRFC shot up to the tune of 2 per cent. Rail Vikas Nigam Ltd or RVNL share price went up around 3 per cent whereas IRCON International share price is up over 2 per cent in early morning session.
According to stock market experts, this rise in railway stocks are mainly due to the budget proposals announced yesterday. They said that the central government has proposed to increase the highest ever capital outlay of ₹2.4 lakh crore for the railway sector, which is expected to fuel sector-driven stocks. They advised positional investors to look at IRCTC and RVNL shares as possible portfolio stocks as these railway stocks still have some steam left.
On why railway stocks are in focus today, Jitendra Upadhyay, Senior Research Analyst at Bonanza Portfolio said, "Shares of Jupitor Wagon, Titagarh Wagons, IRCTC,IRFC, RVNL and IRCON are trading in the green. The government has proposed to increase the highest ever capital outlay of ₹2.4 lakh crore for the railway sector. This would benefit railway sector-driven revenue stock."
On how budget 2023 may benefit railway stocks, Sanjay Moorjani, Research Analyst at SAMCO Securities said, "The government continued its thrust on increasing capital expenditure for the Railways sector by providing an outlay of Rs.2.4 Lakh crore, the highest ever for the sector. It is nearly 9 times the outlay provided in 2013-14. The PM Gati Shakti Policy and National Logistics Policy would also bolster with the enhanced government outlay. Titagarh Wagons, Gabriel, Texmaco Rail, IRCTC, IRFC would be the major beneficiaries from this step up in capital expenditure by the government."
Asked about the railways stocks that one can buy now, Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher said, "IRCTC stock has indicated a double bottom pattern on the daily chart with resistance near ₹652 zone and a decisive breach above this level would give a breakout indication to carry on the momentum still further upward for target of ₹678 levels. The downside support remains strong near ₹605 zone and can be kept as the stop loss level for any investor."
Vaishali Parekh of Prabhudas Lilladher further added, "RVNL stock has been in consolidating for quite some time with support visible near ₹69 levels of the significant 50EMA level and upside has got the resistance zone near ₹81 levels which if breached can open the fresh upside targets of ₹85 and ₹96 levels with currently the indicators well placed and having potential to rise further ahead."
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 taking any investment decisions.
