Heavy buying was seen in railway shares on Monday as the Railway Ministry planned to seek Cabinet approval for an investment program of ₹5.25 lakh crore during the financial year 2024-31 under the PM Gati Shakti National Master Plan.
The share price of Indian Railway Finance Corp or IRFC opened with gains today and hit a new high of ₹66.40 on NSE. The share price of Indian Railway Catering and Tourism Corporation or IRCTC also opened with gains and hit an intraday high of ₹704.25 on NSE, registering a rise of nearly 2 percent during morning deals.
Similarly, the share price of Rail Vikas Nigam Limited or RVNL opened with gains today and hit a new all-time high of ₹158 per share on NSE, registering an intraday gain of about 14.50 percent.
Shares of IRCON International also witnessed heavy buying during morning deals and hit a new high of ₹136.70 per share on the NSE, up 7 percent during Monday’s session.
On why railway stocks are rising today, Derivatives and Technical Analyst at Motilal Oswal said, “Railways after new plan of Ministry of Railways to seek cabinet nod for investment program of ₹5.25 lakh crore during the financial year 2024-31 Stocks are rising. Improve rail connectivity to mining areas, cement plants and consumption points based on the PM Gati Shakti National Master Plan.
Motilal Oswal, an expert said, “This is a positive development and will have medium to long-term impact on railway stocks like IRFC, RBNL, RailTel, IRCTC etc. In fact, one company’s profit will trickle down to the financial condition of the other company.”
IRCTC share price target
Speaking on IRCTC share price outlook, Sumeet Bagadia, Executive Director, Choice Broking said, “IRCTC share price has given breakout at ₹675 level and stock is looking positive on chart pattern. In the short term it can go towards ₹725 and ₹750 levels respectively.”
IRFC share price target
Advising IRFC shareholders, Chandan Tapadia said, “One should hold the stock with a stop loss at ₹61 per share level. “It may go up to ₹72 per level in the short term.”
RVNL share price target
For RVNL shareholders, Chanda Taparia has a call recommendation on the stock with a target price of ₹160 per share while maintaining a stop loss at ₹148.