Railway stocks jump up to 10% led by Jupiter Wagons, IRCTC as Ashwini Vaishnaw assumes charge as Minister of Railways
Railway stocks surged up to 10% as Ashwini Vaishnaw resumed as the Indian Railway minister. Jupiter Wagons led with a 10% rise, followed by Texmaco Rail & Engineering and IRCTC, both up 6%. Other gainers included RVNL, IRFC, BEML, Ircon International, RITES, and CONCOR, up between 2.5% and 5%. Vaishnaw, heading the ministry since July 7 in Modi 2.0, was trusted with the role once again by Prime Minister Narendra Modi, with the decision announced on Monday.
jumped up to 10% after Ashwini Vaishnaw took charge as the Indian Railway minister continuing from his previous stint. The gains were led by Jupiter Wagons which shot up to the day's high of Rs 682.90 on the NSE, gaining 10% on the intraday basis. It was followed by Texmaco Rail & and Indian Railway Catering and Tourism Corporation (IRCTC), which surged 6% each as of noon.The other gainers were Rail Vikas Nigam Limited (RVNL), Indian Railway Finance Corporation (IRFC), BEML, Ircon International, RITES, and Container Corporation of India (CONCOR) which were up between 2.5% and 5%.
Vaishnaw who has headed the ministry since July 7 during Modi 2.0 has been trusted with the job once again by Prime Minister Narendra Modi. The decision on portfolio allotment came on Monday.
Railway stocks have had a dream run over the last year and almost all the aforementioned stocks have delivered multibagger returns. State-run RVNL's year-to-date and 1-year returns stand at 214% and 113%, respectively. IRFC's 1-year returns are even better at 434% while this year so far, they stand at 76%. Ircon's 1-year returns stand at 218%.
Among other PSY railway stocks IRCTC and RITES yielded 56% and 82%.
Among the private ones, Titagarh (189%), Texmaco (208%), and Jupiter Wagons (400%) have also moved on the fast track.
Commenting on railway stocks, market analyst Sudeep Shah said that the counters have experienced a strong upward rally over the past few quarters. Notwithstanding the recent correction on lower than expected election verdict, where the stocks witnessed deep corrections, Shah sees a major trend for most stocks to remain bullish.
This is evident by the formation of higher highs and higher lows on both weekly and monthly charts, he added.
Technically, RVNL is in a strong position, trading above all its short- and long-term moving averages, Shah said, recommending the Rs 360-350 zone to be an ideal price range for accumulating RVNL for medium to long-term investment.
In the private space, Shah sees potential in Titagarh Rail Systems, which recently found support near its 100-day EMA and experienced a strong rebound. This recovery has propelled the stock above its short-term moving averages and the trend in it remains strong, he opined, placing support at Rs 1280-1250.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source: Stocks-Markets-Economic Times
