Stock Market Today: Railway PSU stocks such as Rail Vikas Nigam Ltd (RVNL), RailTel Corporation of India, RITES Ltd, IRCON International Ltd, and Indian Railway Finance Corporation Ltd (IRFC ) saw sharp gains of up to 10% in morning trades on Monday, November 25.
Here is what is driving the rally:
The strong comprehensive win for the BJP in the state elections in Maharashtra has added to the confidence of the market participants.
Mahesh M Ojha, AVP—Research at Hensex Securities, said, “After the Lok Sabha Election Results, Indian stock market investors went defensive and started looking at FMCG and pharma stocks. However, after the Maharashtra Assembly Election Results, they may start looking at railway, infra, and banking stocks, changing their investment strategy from defensive to aggressive."
The gains in the railway stocks were led by Rail Vikas Nigam Ltd (RVNL) which saw its share price rise 10%. RVNL has been seeing strong order flows with recent being from the Eastern Railways. RVNL in its recent release on the exchanges said that M/s RVNL- SCPL (JV) has received a Letter of Acceptance from Eastern Railway for “Earthwork in cutting and filling, blanketing, construction of minor bridges, major bridges, RUB, ROB, retaining wall, level crossing, side drain, catch water drain, the public way work and other ancillary works, which is in connection with the construction of multi-tracking Railway BG line. The project cost is ₹838 crore with a completion timeline of 36 months.
RailTel Corporation of India Ltd (RailTel) also saw gains of almost 10% in the morning trades. RailTel in its recent release on the exchanges announced receiving the work order from Central Medical Services Society (CMSS), Department Of Health And Family Welfare, Ministry Of Health And Family Welfare for Manpower Outsourcing Services amounting to ₹9.93 crore. (Including Tax).
RITES share price also saw gains of up to 10%. RITES in a release said it has received revised estimates for Railway Electrification work of LMG-BPB Section of Lumding Division, N.F Railway. The revised total cost of the project is ₹531.77 crore, excluding GST (including PMC fee). The original cost of the project was ₹288.44 crore, excluding GST (including PMC fee).
IRCON International Ltd share price also gained 7.5% in morning trades. IRCON informed the exchanges that Infomerics Valuation and Rating Private Limited, has assigned credit ratings of IVR AAA/ Stable (IVR Triple A with Stable Outlook) and IVR A1+ (IVR A One Plus) credit ratings for bank facilities of the company.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
