IRFC To RVNL: Railway Stocks Rally After Minister Announces Expansion Plans
Minister of Railways Ashwini Vaishnaw announced the introduction of 2,500 new general passenger coaches and 10,000 non-AC coaches including 50 new Amrit Bharat trains.
Railway stocks surged to fresh one-year highs on Monday after Union Minister of Railways Ashwini Vaishnaw announced the introduction of 2,500 new general passenger coaches and 10,000 non-AC coaches on Friday.
"Railways remains committed to providing affordable rail travel to the poor, lower and middle class," he said at the MoU signing ceremony in Rail Bhavan. He also announced the production of 50 new Amrit Bharat trains during the MoU signing ceremony in Rail Bhavan.
Rail Vikas Nigam Ltd., Indian Railway Finance Corp., and IRCON International Ltd. are among the sector's top gainers, having all hit 52-week highs during early trade.
Shares of IRCON International Ltd. rose as much as 9.44%, while those of Indian Railway Finance Corp. and Rail Vikas Nigam Ltd. surged 8.69% and 15.57%, respectively, on Monday.
The notable uptick in Rail Vikas Nigam stocks comes after Delhi Metro Rail Corp. agreed to collaborate on upcoming infrastructure projects both domestically and internationally. Its shares soared to Rs 567.50 each.
IRCON International shares rose to Rs 334.50 apiece after the company announced on Thursday that it had secured a huge order from Rail Vikas Nigam. The order entails designing, supplying, installing, testing, and commissioning a broad gauge ballastless track, along with supplying ballast for a 125-kilometre stretch between Rishikesh and Karanprayag in Uttarakhand. The contract, valued at 750 crore, was disclosed via exchange filings.
IRFC, the primary market borrowing arm, greatly aids the Indian Railways Infrastructure Development Plan by providing all extra budgeted resources needed to fund capital expenditures. IRFC shares rose to Rs. 206 apiece.
Analysts are also expecting significant rail infrastructure-announcements in the budget.
