Budget 2024: IRCTC, IRFC, RVNL to Ircon — Why railway stocks are skyrocketing?

Railway stocks have been in an uptrend for a long but it seems that these stocks still possess upside potential. during early morning deals on Friday, shares of Indian Railway Catering and Tourism Corporation (IRCTC), Limited (RVNL), (IRFC) and touched a new lifetime highs or 52 week highs. IRCTC share price today touched a new 52 week high of 958.30 apiece on NSE, RVNL share price ascended to a new lifetime high of 207 per share level, IRFC share price today climbed to a new record high of 114 per equity share while IRCON share price today hit a new peak of 114 on NSE.

According to stock market experts, diversification of business, focus on the infrastructure sector in the upcoming budget 2024, Government of India (GoI) declaring fresh infusion for the development of railway infrastructure and expected strong Q3 results by these companies are one of the major reasons for the recent rally in these railway stocks.

Triggers for railway stocks On why railway stocks are ascending, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Railway stocks are in an uptrend as GoI has declared a fresh investment of around 7 lakh crore for the development of rail infra. In the upcoming budget, the market is expecting that GoI may continue to focus on the infrastructure sector, which is expected to benefit these railway PSU companies.

Apart from this, railway PSUs like IRCTC have diversified their business in recent years, which is expected to help them deliver strong Q3 results 2024. So, these are some combination of factors that are aiding rally in railway stocks." Advising these railway stockholders to remain vigilant about the next one to two quarters, Saurabh Jain, Vice President — Research at said, "PSU companies are expected to remain sideways after the Union budget 2024 due to the fast approaching Lok Sabha elections 2024.

Model code of conduct may become effective after the announcement of the date of the Lok Sabha polls. In that case, PSU companies may not be able to maintain the speedy business, which they are getting these days. So, shareholders of these companies are advised to remain informed about the new developments regarding Lok Sabha polls and the upcoming budget 2024." Saurabh Jain said that the Q3 results of these companies are already discounted by the market and the next one to two quarters may not come as good as that of the recent quarterly numbers.

He said that long term investors should remain patient whereas short term investors can book profit anytime they want. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.