Some of the railway stocks are seeing tremendous boom in recent times. Especially companies like RailTel Corporation of India Limited (Railtel), Rail Development Corporation Limited (RVNL), and IRCON International Limited increased by 8% on Monday.
The shares of these three companies saw the purchase and sale of more than 1 crore shares in the first two hours of trading, which is many times more than their 20-day average transactions. Let’s know what is the reason for the rise in these shares…
Demand for shares increased from big orders
A major reason for this fast is recently large projects found. RailTel has received an LOA (Letter of Accountance) of an important order of Rs 210 crore from Bihar Education Project Council. Apart from this, the company had confirmed to get other orders worth about Rs 1,000 crore last week. For this reason, RailTel’s stocks have recorded an increase of about 8%.
At the same time, RVNL has emerged as the lowest bidding company of Rs 169 crore for a West Central Railway project. The time limit for completion of this project is 540 days.
IRFC shares also gain
The shares of government financial company IRFC are also trading at Rs 2.6% to Rs 129.59 on Monday. IRFC provides financial support for railway projects, so as railway projects grow, demand for IRFC also increases.
Government projects increased enthusiasm
Railway Minister Ashwini Vaishnav has recently mentioned the implementation of projects worth ₹ 77,000 crore in the Northeast. Apart from this, Prime Minister Narendra Modi has inaugurated additional projects worth ₹ 8,500 crore in Bairabi-Grang railway line in Mizoram and ₹ 8,500 crore in Manipur. After these announcements, investors are expecting great possibilities in the coming time in the railway sector.
Disclaimer: This article is only for information. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.