Stock in FOCUS: Tension has remained in countries around the world since the announcement of reciperochl tariff of US President Donald Trump. The impact of tariffs is also being seen on America’s market including the Indian stock market. Dalal Street has already been turning red for the last 5 months. Now after the announcement of tariff from Trump, the Indian stock market is seeing a decline. Out of the list top 10 companies in the market, the market cap of 9 companies has seen a decline. In such a situation, the Government of India has taken a big decision related to the railway on Friday, which is being expected. On Monday, its impact will be seen on railway shares. Railway shares will be in focus. Let us tell you the reason behind this.
The Union Cabinet on Friday approved four railway multicraking projects worth Rs 18,658 crore, so that Railway PSU stock including IRFC, Railway Corporation of India and Rail Vikas Nigam Limited (RVNL) will be in focus on Monday.
Where and where the budget will be spent
These four schemes of the government will cover the states of Maharashtra, Odisha and Chhattisgarh and their goal will be to develop railway for 1,247 km. Of these, the cabinet has approved investment of Rs 8,741 crore to construct a 615 km long new railway line in Chhattisgarh. Apart from this, a budget allocation of Rs 4,819 crore has been approved to double the railway line on Gondia-Balharshah Marg in Maharashtra. The scheme of 277 km costing Rs 3,917 crore has been approved for the construction of the third and fourth railway lines between Sambalpur and Jarapada in Odisha. At the same time, the fourth scheme includes adding the third and fourth lines between Jharsuguda and Sasan in Odisha.
How was the condition of shares
IRFC
IRFC shares fell 2.69 percent to close at Rs 125.69 per share on the last trading day i.e. Friday.
Railway development corporation limited
The share price of Rail Development Corporation fell 2.39 percent on Friday to close at Rs 351.15 per share.
Railtel
The stock of RailTel Corporation of India fell 4.41 percent to close at Rs 298 on Friday.