Railway Vikas Nigam Limited (RVNL) Shares Surge to 52-Week High with an Impressive 18% Rally

Pranay

11 months ago

Railway Vikas Nigam Limited Shares Surge to 52-Week High:

“Railway Vikas Nigam Limited (RVNL) shares leaped over 16% in early trading on Friday, hitting a brand new high for the year. By 1:28 pm on the Bombay Stock Exchange (BSE), RVNL shares were soaring at Rs 288 each, marking an impressive 18.18% increase. During the morning session, the Railway PSU’s stock even reached a new 52-week peak of Rs 288.65.

This remarkable surge has propelled the market value of the railway PSU beyond 60,000 crores. Notably, RVNL had already delivered substantial returns to investors throughout 2023. In the last five trading days alone, the RVNL stock has surged by more than 39%, contributing to an overall gain of nearly 56% for January.”

“RVNL Stock Surges: Remarkable Growth of 140% in Six Months and an Astonishing 273% Over the Past Year.”

What’s Behind Today’s RVNL Share Rally?

“RVNL, along with other railway companies, is having a great time in the stock market despite recent ups and downs. Why? Well, analysts are feeling really positive about railway stocks as we approach the Interim Budget for 2024-25.

It’s not just RVNL; other railway companies like IRFC, Ircon International, Railtel Corporation, and IRCTC are also on a winning streak. Why the excitement? Analysts believe the government is gearing up to announce a boost in spending for Indian Railways, focusing on building more infrastructure.

One analyst, Vishal Periwal from IDBI Capital, pointed out that the recent surge in railway stocks is all about the upcoming budget. According to him, there’s a widespread expectation that the government will set aside a significant budget for the railway sector.

Experts are predicting a strong demand for stocks from railway Public Sector Undertakings (PSUs) leading up to the budget. And it’s not just railways; stocks of Public Sector Undertakings (PSUs) in various sectors are also expected to keep going up as everyone eagerly awaits a bigger investment in infrastructure in the upcoming budget.”

Navigating the PSU Stock Surge:

“Palka Arora Chopra, Director at Master Capital Services Ltd, recently shared her thoughts on the surge in Public Sector Undertaking (PSU) stocks.

According to her, the prices of many PSUs have gone up, especially Public Sector Banks, which have outperformed private banks by more than 60% in the last year. Chopra attributed this to the government taking proactive steps to ensure accountability and growth in PSU companies. This has boosted investor confidence, especially given the sector’s potential to make significant contributions to India’s GDP through infrastructure development.

Chopra suggested that, looking at it from a basic perspective, investors might want to consider gradually getting into PSU stocks that have strong fundamentals. At the same time, she advised taking profits in stocks that have seen substantial gains during the recent market rally.”