IRFC, Ircon hit 52-week high: Here’s why five railway stocks trade in green - Explained
Railway stocks gain as PM Modi launches new capital expenditure program to revamp 508 railway stations.
Railway Stocks News: Five railway stocks were in focus on Monday's trading session after Prime Minister Narendra Modi launched a new capital expenditure (capex) programme worth ₹24,470 crores to revamp 508 railway stations on Sunday.
Share of Indian Railway Finance Corporation Ltd (IRFC) and Ircon International Ltd gained over 6%, and touched 52-week high, while shares of Rites Ltd, Railtel Corporation of India Ltd, and Jupiter Wagons Ltd gained over 0.4% to 5%.
Under the Amrit Bharat Station Scheme, which was conceptualised earlier this year with a goal to renovate more than 1,300 stations, the redevelopment is being carried out.
The 508 stations are spread among 27 states and union territories, with 55 stations each in Uttar Pradesh and Rajasthan, 49 in Bihar, 44 in Maharashtra, 37 in West Bengal, 34 in Madhya Pradesh, 32 in Assam, 25 in Odisha, 22 in Punjab, 21 in Gujarat and Telangana, 20 in Jharkhand, 18 in Andhra Pradesh and Tamil Nadu, 15 in Haryana, and 13 in Karnataka, among others.
On Sunday, PM Modi laid the foundation stone for the renovation of 508 railway stations around the nation.To increase passenger capacity, boost employment creation, and serve as city centre, the stations are being renovated at a cost of ₹24,470 crore.
Modern passenger amenities will be offered as part of the redevelopment, which will also ensure efficient traffic flow, intermodal integration, and passenger-guiding signs.
According to the ministry of railways, local culture, history, and architecture will serve as inspiration for the design of the station structures.
“With time, railway stations have become the heart of cities. That’s why it’s important that railway stations are modernised and the area is utilised in an optimum manner,” Modi said.
Technical Views
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, Ircon International share price has witnessed a strong uptrend and post some consolidation in last week, prices have resumed upward trend by confirming a flag pattern breakout. Going with this pattern prices can extend move upto 110 in the near term, with 95 as strong support. Ircon International share price opened at an intraday low of ₹96.11 on BSE. Ircon International stock price touched an intraday high of ₹102.82 apiece.
While as Rites share price is seeing profit booking post its all time high marked at 505 on 26th July, overall the trend remains positive and this dip can be considered as buying opportunity 420 - 410 is immediate support whereas prices can retest 500 levels in the near term, said Bhosale. Rites share price opened at ₹455.05 apiece on BSE.
On the other side, IRFC share price has seen sharp surge in last few trading sessions and in this month it is already up by 26%, and the momentum remains positive. However buying on dip should be preferred, 44 is support going ahead whereas 54. IRFC share price opened at ₹45.90 apiece on BSE, and IRFC stock price touched intraday high of ₹48.65.
Railtel share prices have given multi-month breakout and are in a strong uptrend, last couple of sessions has been range bound buy bias remains positive and soon momentum can be seen on the upside, 160 is support whereas prices can extend towards 200, according to Bhosale. Railtel share prices opened at intraday low of ₹168.80 apiece on BSE.
Jupiter Wagons share price opened at ₹215.45 apiece on BSE.
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