Railway shares found investor interest on May 16 after a sustained period of selloff from recent highs, even as the benchmark indices struggled in the red during the session, supported by a strong momentum in defence-related shares.
The easing border tensions between India and Pakistan has likely supported the rally in railway shares. Recent border tensions had weighed on infrastructure projects, especially in states along the western border, including railway's expansion and upgradation plans. The ceasefire has come as a possible relief for the shares, as the focus returns of capex and ordering for railway upgradation.
"Alongside key sectors, themes such as defense, railways, and PSU banking are also offering trading opportunities. However, it's important to maintain a balanced view and avoid excessive exposure," Religare Broking's Ajit Mishra had said earlier this week.
Titagarh Rail Systems shares soared over 13 percent in trade, after having fallen over 65 percent from their recent highs in March this year. The stock has now recovered nearly 40 percent from its 52-week low, though it is still around 52 percent away from its 52-week high level.
Rail Vikas Nigam (RVNL) shares gained over 9 percent after the company announced a Rs 116 crore order from the Central Railway for upgradation of an electric traction system in the Nagpur division.
Shares of Railtel Corporation of India, IRCON International and Indian Railway Finance Corporation (IRFC) gained over 6 percent each, while those of BEML and Texmaco Rail & Engineering surged over 5 percent each. Concor and Indian Railway Catering and Tourism Corporation (IRCTC) shares were higher by over 3 percent each.
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