IRFC, RVNL, IRCON, RITES Shares: Railway Stocks Rally By 9% As India To Build $3.4 Bn Rail Lines Near China

Mega railway stocks rally sharply till 9% on September 15, as India announces a $3.4 billion deal to build Indian Railway lines near the Chinese border. This CAPEX push is a key positive. Also, gains in some railway stocks were driven by their new order wins. The highest gainers are RailTel, IRCON, RVNL and more.

Railway Stocks On September 15:

The biggest gainer was RailTel Corporation, which skyrocketed by nearly 9% in the early trade, followed by IRCON International with gains of 8.30%. These two stocks have touched an intraday high of Rs 407.75 and Rs 186.65 apiece, respectively.

Also, Rail Vikas Nigam Limited (RVNL) stock zoomed by around 5.2% by hitting an intraday high of Rs 355.55. Stocks like RITES and Titagarh Rail Systems zoomed by 4.8% and 4.04% after hitting the day's high of Rs 280.6 apiece and Rs 964.9 apiece, respectively. Texmaco Rail advanced over 3.8% with an intraday high of Rs 152.35.

Stocks like IRFC and IRCTC jumped by 3.3% and 1.2% to an intraday high of Rs 130.35 apiece and Rs 730.5 apiece on BSE. Lastly, Container Corporation (ConCor) climbed 2% to an intraday high of Rs 561 apiece.

"Traders should continue to focus on the sustained strength in metals, autos, and pharma, while remaining selective in other sectors and themes such as defense and railways," said Ajit Mishra - SVP, Research, Religare Broking.

Companies like RAILTEL and Texmaco have bagged new orders, which were added contribution to their upside on BSE and NSE.

Texmaco bagged orders worth Rs 129.09 crore from the giant RVNL for Design, Supply, Erection, Testing and Commissioning of 2*25 KV Traction Over-Head Equipment and associated activities at Yavatmal-Digras section of Nagpur Division in Central Railways.

While RailTel bagged an order worth more than Rs 209 crore from State Project Director (Spd) Bihar Education Project Council (Bepc).

India-China New Railway Lines:

India is gearing up to expand its northeastern frontier by building for Indian railway lines, expanding near China.

As per the Bloomberg report, the approved plan involves laying 500 kilometers (about 310 miles) of rail lines, including bridges and tunnels, to connect remote regions bordering China, Bangladesh, Myanmar and Bhutan, according to people familiar with the matter.

Also, sources told the news agency that the project may cost about Rs 300 billion or $3.4 billion to the Indian government and is expected to be completed within four years.

Earlier, Prime Minister Narendra Modi had announced the focus on improving the railway connectivity in crucial regions, which also included 1,450 kilometers of fresh roadways along the border and infrastructure near Doklam, which is an area in Chumbi Valley.

As per PIB's latest update on September 13, since 2014, railway allocations to the region have multiplied five times, touching Rs 62,477 crore. Of this, Rs 10,440 crore has been set aside for the current fiscal year. With projects worth Rs 77,000 crore uunderway,the region is seeing the largest wave of rail investment in its history. In Mizoram, Nagaland, Manipur, and beyond, long-delayed projects are finally linking capitals to the national grid. In Tripura, rthe railwayline has reached the bborders; Meghalaya has seen its first railway station, while Arunachal Pradesh, Sikkim, and Assam push forward with new lines, electrification, and doubling works. Each state's journey shows how railways are shaping the Northeast.