Mumbai: On Monday, May 12, railway stocks saw a sharp rise in the stock market. Companies like RVNL, IRFC, and Jupiter Wagons went up by as much as 10 per cent. This rally came after a weak last week, where many of these stocks had fallen nearly 9 per cent.
RVNL Leads the Gains
Shares of Rail Vikas Nigam Ltd. (RVNL) went up 9.6 per cent to touch Rs 354.25. The stock was the top gainer on the Nifty Midcap index. RVNL also ended its four-day losing streak and recovered most of the losses it saw in the past month. At the end of the day, it was trading 9.5 per cent higher at Rs 353.95.
Other Railway Stocks Also Rally
IRFC shares gained 7.6 per cent to hit Rs 125.29. It broke its two-day losing run. IRCON International also saw strong buying. Its stock rose 8.3 per cent to Rs 159.79, recovering from a 7 per cent drop over the last week.
RailTel Corporation shares rose for the second straight day. The stock gained 5.1 per cent to reach Rs 324.1 during the day and stayed up 4 per cent at Rs 320.65.
IRCTC also saw a 6 per cent jump. This came after news that India and Pakistan agreed to stop military activities. This helped tourism and travel stocks move up.
Global and Local Sentiment Boosts Market
Positive global news also helped the rally. The U.S. and China announced progress in their trade talks. This improved investor mood across markets. In India, the easing of tensions with Pakistan supported the broader market rally.
Stocks Still Below Peak
Even with Monday’s big gains, most railway stocks are still down 30 per cent to 50 per cent from their record highs in July and August last year.
