Why are Railway PSU stocks surging today
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State-owned Railway stocks witnessed strong buying on Monday, driven by major order wins and positive updates. Rail Vikas Nigam (RVNL), RITES, RailTel Corporation of India, IRCON International, and Indian Railway Finance Corporation (IRFC) surged by up to 13% in early trade today, in sync with the broader market.
RITES led the rally with its shares climbing over 13% to an intraday high of ₹310 on the NSE, from a previous close of ₹275.25. The stock gained momentum after it received revised estimates for a railway electrification project in the Lumding-Badarpur section, raising the total cost to ₹531.77 crore from ₹288.44 crore.
Rail Vikas Nigam (RVNL) shares also jumped 10% to an intraday high of Rs. 462.90 after it secured a ₹838-crore railway construction contract from Eastern Railway for projects including earthwork, bridges, and track construction. The project has to be completed in 36 months. Additionally, RVNL announced two major orders from Bharat Sanchar Nigam Limited (BSNL) for the BharatNet network, valued at ₹1,917 crore and ₹5,008 crore, and a ₹294.9-crore track electrification project in Telangana.
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Similarly, RailTel shares rose nearly 10% after announcing a ₹9.93-crore manpower outsourcing order from the Central Medical Services Society under the Health Ministry. Meanwhile, IRCON International shares gained 7.5% following a credit rating upgrade to IVR AAA/Stable by Infomerics Valuation and Rating.
The rally is fuelled by robust order inflows and optimistic outlooks. The recent victory for the BJP-led Mahayuti in the Maharashtra Assembly elections has boosted market confidence, potentially shifting investor focus toward railway, infrastructure, and banking stocks.
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