<p>Shares of companies involved in the railway industry have been on the rise; on September 11, the stocks increased 2–15% due to more optimistic expectations after the G20 Summit in New Delhi, which saw the announcement of a global rail and port agreement linking the Middle East and South Asia. The idea is to use the US as backup to fend against China’s Belt and Road initiative for global infrastructure.<img decoding=”async” class=”alignnone wp-image-174508″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-the-song-that-inspires-shah-rukh-is-revealed-download-2023-09-11t180203.613.jpg” alt=”theindiaprint.com the song that inspires shah rukh is revealed download 2023 09 11t180203.613″ width=”1324″ height=”881″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-the-song-that-inspires-shah-rukh-is-revealed-download-2023-09-11t180203.613.jpg 275w, https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-the-song-that-inspires-shah-rukh-is-revealed-download-2023-09-11t180203.613-150×100.jpg 150w” sizes=”(max-width: 1324px) 100vw, 1324px” title=”Why Are Railway Stocks Rallying Today If Ircon Jumps 15%, RVNL, and Railtel Reach Record Highs? 3″></p>
<p>Ircon International, one of the equities, rose 15% during Monday’s intraday session on the BSE, reaching a record high of Rs 153.65. In the first 11 minutes of trading on the NSE and BSE, approximately 26 million equity shares collectively changed hands, indicating the counter had very high trading volumes.</p>
<p>Leading public sector turnkey construction firm Ircon operates under the Ministry of Railways. The company has completed projects in the construction of roads, highways, commercial, industrial, and residential buildings and complexes, airport runway and hangars, metro, and mass rapid transit systems, among other things. The company also has experience in the leasing of locomotives.</p>
<p>In the meanwhile, intraday trading saw shares of Indian Railway Finance Corporation (IRFC) rise 10% to a record high of Rs 84.50. It has soared 68% during the last seven trade days. A rapid increase in the company’s stock price has increased IRFC’s market capitalization over Rs 1 trillion. According to BSE statistics, the market capitalization of IRFC is now Rs. 1.11 trillion.</p>
<p>Rail Vikas Nigam shares also increased 10% to Rs 178.90, while RITES shares increased 6% to Rs 583.45 in intraday session on the BSE. The S&P BSE Sensex, in contrast, was up 0.35 percent at 66,834 at 9:35 AM.</p>
<p>At the G20 Summit, a new rail and sea route linking the Middle East, South Asia, and Europe was unveiled. A transit route for commerce, energy, and data from India via the Middle East to Europe is something that the US, India, Saudi Arabia, the UAE, the EU, and other G20 members want to investigate.</p>
<p>These are only announcements, and no business has actually received a particular contract for this route.</p>
<p>Recently, fundamental factors have supported a significant upward trend in the price of railroad equities.</p>
<p>As far as the railroad and defense industries are concerned, there is now a tremendous momentum. But maybe we have gotten ahead of ourselves in terms of valuations and investors, said Krishna Kumar Karwa of Emkay Global to CNBC-TV18.</p>
<p>Therefore, investors should exercise caution while investing in this market sector since there may be some consolidation and price correction. I’m not suggesting there aren’t opportunities. I agree that the values may not be discounting FY25-FY26, and my general rule is that if you think that the valuations are best discounted three years out, then you should take some money off the table, he said.</p>
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Why Are Railway Stocks Rallying Today If Ircon Jumps 15%, RVNL, and Railtel Reach Record Highs?
