Railway stocks surge 19% ahead of Budget 2024; Rail Vikas Nigam up 200% in one year

RVNL Shares: Public Sector Enterprise Rail Vikas Nigam's shares hit an all-time high of Rs 230 each in the early trade on Monday. The shares surged 13.49% to scale their all-time high level during intraday deals. It eventually closed at Rs 220 after witnessing 8.67% gains.

The stock has jumped nearly 200% in one year

Railway stock performance

The railway stock commanded a market-capitalisation of Rs 46,016.39 crore. On the BSE, about 71.11 lakh shares changed hands today which was higher than the two-week average volume of 21.26 lakh shares. The turnover at the counter was at Rs 157.19 crore.

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As per Analysts quoted in Business Today, RVNL may climb up to Rs 282 in the near term and that traders must trail profits at the current level.

"RVNL is in a secular up trend, hovering at its lifetime high zone. The counter recently surpassed the Rs 200 mark and continued its upward rally into uncharted territory. For now, it is advisable to keep trailing profits. Rs 200 is likely to act as a strong support zone in the comparable period", Senior Research Analyst - Technical & Derivatives at Angel One Osho Krishnan told Business Today.

Rail Vikas Nigam Limited is an Indian central public sector enterprise which works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. Promoters held 72.84% stake in the company, as of September 2023.

Reason for rally in railway stocks

A majority of the railway stocks also saw an upward trend on Monday. This after reports of Budget allocation for the sector could hit record high emerged. Railway stocks jumped up to 19% becoming the top gainers on Monday.

Railway stock IRFC surged nearly 19% to hit an all-time high of Rs 134.5 as 33.66 crore shares worth Rs 4,291.5 crore changed hands on the counter