Rail Vikas Nigam Ltd, or RVNL share price jumped over 4% in early trade on Tuesday after a couple of positive developments for the railway PSU stock. RVNL shares gained as much as 4.6% to ₹601.75 apiece on the BSE.
RVNL shares extended rally from an 11% jump in the previous session led by strong buying momentum in the railway stocks.
RVNL shares will be included in the MSCI India Index along with six other stocks. In its August reshuffle, MSCI has announced the inclusion of Rail Vikas Nigam Ltd, Vodafone Idea, Dixon Technologies (India), Oil India, Oracle Financial, Prestige Estates and Zydus Lifesciences into the India index, which is part of the MSCI Global Standard Index.
RVNL shares are estimated to attract passive inflows worth up to $219 million as 31.8 million shares will be traded, according to Nuvama Alternative and Quantitative Research.
RVNL stock has also been upgraded to the large cap section of its Emerging Market India by the global index provider.
All changes will be implemented as of the close of August 30, 2024, MSCI said.
RVNL share price is on the cusp of fresh breakout at ₹625.
On breaching above this level, RVNL share price is expected to touch ₹700 apiece in the near term, said Sumeet Bagadia, Executive Director of Choice Broking.
Bagadia has included RVNL shares in the list of his top breakout stocks to buy today. Bagadia recommends holding long RVNL shares with a target price of ₹700 per share after a breakout at ₹625. He suggests adding a stop loss in RVNL stock trade at ₹540 level.
The multibagger railway PSU stock, RVNL shares have more than doubled investors’ money in just three months. RVNL share price has jumped over 120% in the past three months period, while the railway stock has rallied more than 217% year-to-date (YTD).
RVNL share price given a stellar multibagger return of over 356% in the past one year and over 1,845% in three years.
On Monday, RVNL shares jumped 11.01% to close at ₹575.20 apiece on the BSE amid a surge in railway stocks. This rally in railway stocks came after the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved eight projects of the Ministry of Railways with a total estimated cost of ₹24,657 crore.
At 9:25 am, RVNL shares were trading 3.34% higher at ₹594.40 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
