NewsOrders & DealsRailway Stocks Surge on Strong Order Inflow and Government Project AnnouncementsRailway Stocks Surge on Strong Order Inflow and Government Project Announcements
Railway sector stocks experienced significant gains, with some rising up to 8%. RailTel Corporation secured orders worth ₹1,000 crore, including a ₹210 crore order from Bihar Education Project Council. Rail Vikas Nigam Limited (RVNL) won a ₹169 crore project from West Central Railway. Jupiter Wagons received a ₹113 crore order from the Ministry of Railways for 9,000 LHB Axles. Government announcements of projects worth ₹77,000 crore in the North-east and additional ₹8,500 crore in Manipur boosted sector sentiment. Notable stock gains included IRCON International and RailTel Corporation (7.70% each), RVNL (4.00%), and IRFC (2.60%).
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Railway sector stocks experienced a significant uptick, with some gaining up to 8% following a series of positive developments in order activity and government project announcements.
RailTel Corporation Leads the Rally
RailTel Corporation emerged as a standout performer among railway public sector undertaking (PSU) stocks. The company's shares surged after it secured a substantial order worth ₹210.00 crore from the Bihar Education Project Council. This order was part of a larger windfall for RailTel, which confirmed receipt of multiple orders totaling close to ₹1,000.00 crore.
RVNL Secures Major Project
Rail Vikas Nigam Limited (RVNL) also saw its stock price rise on the back of positive news. The company emerged as the lowest bidder for a ₹169.00 crore project from West Central Railway. This project comes with a 540-day execution timeline, potentially providing RVNL with a steady stream of work in the coming months.
Jupiter Wagons Bags Ministry of Railways Order
Adding to the sector's momentum, Jupiter Wagons received a significant order from the Ministry of Railways. The company will supply 9,000 LHB Axles for railway bogies in a deal worth ₹113.00 crore, further highlighting the increased activity in the railway sector.
Government Initiatives Boost Sector Sentiment
The surge in railway stocks was further fueled by recent government announcements. Railways Minister Ashwini Vaishnaw revealed that projects worth ₹77,000.00 crore are currently being implemented in the North-east region. Additionally, Prime Minister Narendra Modi inaugurated the Bairabi-Sairang railway line in Mizoram and announced extra projects worth ₹8,500.00 crore in Manipur, underscoring the government's commitment to railway infrastructure development.
Stock Performance Overview
The positive sentiment was reflected across various railway-related stocks:
| Company | Stock Movement |
|---|---|
| IRCON International | 7.70% |
| RailTel Corporation | 7.70% |
| RVNL | 4.00% |
| IRFC | 2.60% |
IRFC (Indian Railway Finance Corporation) was trading at ₹129.59, showcasing the broad-based rally in the sector.
The surge in railway stocks highlights investor optimism surrounding the sector, driven by a combination of strong order inflows and government-led infrastructure initiatives. As these projects progress, they are expected to contribute significantly to the growth and development of India's railway network.
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