IRFC & RVNL Share Price: A Look at the Recent Surge
1. 🚂 Introduction:
Finance Minister Nirmala Sitharaman is set to present the interim budget on 1st February. However, even before the budget announcement, railway-related companies have witnessed a significant surge in their share prices. Indian Railway Catering and Tourism Corporation (IRCTC), Jupiter Wagons Limited, Rail Vikas Nigam Limited (RVNL), Indian Railway Finance Corporation (IRFC), and Ircon International have recently reached new highs in their 52-week performance.
2. 📈 Impressive Growth:
In the past month, IRCTC shares have registered a 13% increase, while Jupiter Wagons’ shares saw a rise of 13%. RVNL shares witnessed a 15% surge, and IRFC shares experienced a remarkable growth of 36%. Ircon International’s shares have also shown an impressive growth of 21%. What could be the reason behind this surge in railway-related company shares?
3. 💰 Budget Allocation:
According to analysts, the Modi government is likely to announce a substantial fund allocation for railway capital expenditure in this year’s budget. This anticipation has led to increased investor interest and resulted in a bullish trend for railway shares. In the 2023 budget, Finance Minister Nirmala Sitharaman had allocated a record-breaking amount of INR 2.4 lakh crore to the Railway Ministry. This was the highest-ever financial provision received by the ministry and nearly nine times the amount allocated in the 2013 budget.
4. 📅 Future Prospects:
Investors believe that the momentum in railway stocks is likely to continue in 2024 as well, as there is a possibility of increased allocation for the railways in the upcoming budget. Additionally, the proposed India-Middle East-Europe Economic Corridor is expected to provide a significant boost to the railways. This ambitious project, aimed at connecting India, Saudi Arabia, the UAE, and Europe, has the potential to be a game-changer for the sector and contribute to its long-term development.
5. 🚆 Modernization Efforts:
The government has also initiated the “Amrit Bharat Station Yojana” for the modernization of railway stations. A total of 1,309 railway stations have been identified for upgradation so far. Furthermore, the government has allocated a budget of INR 13,355 crore for passenger amenities in the current fiscal year. With plans to operate a total of 400 Vande Bharat trains, the government is focused on bringing modernization and improved facilities to the Indian Railways.
In Short, the recent surge in IRFC and RVNL share prices can be attributed to the anticipation of increased budgetary allocation for railway capital expenditure and the prospects of major infrastructure projects. Investors are optimistic about the future prospects of railway-related companies, and the government’s focus on modernization and development further adds to the positive sentiment surrounding the sector.
Disclaimer: This is News Coverage with Opinions of Experts and Should Not Be Taken as Direct Market Buying Tip. Market is always subject to risk. We recommend taking our content as research before investing.
