Railway stocks tank up to 16% amid profit booking. Ircon, RITES among top laggards

Railway stocks fell up to 16% on Tuesday amid profit-booking, following a strong rally ahead of the Union Budget 2024. The decline was led by Ircon International (16%), followed by state-run Rail Vikas Nigam Limited (RVNL) and RITES, which fell up to 8.5%. The country’s most valuable railway counter, Indian Railway Finance Corporation (IRFC), dropped nearly 6% around 11:30 am.
Others, including Texmaco Rail & Engineering, Indian Railway Catering and Tourism Corporation (IRCTC), Titagarh Rail Systems, and Jupiter Wagons, plunged up to 8%.

Ircon’s gains over the last five trading sessions stand at 15%, while those of IRFC, RVNL, and RITES have gained up to 16, 28%, and 8%, respectively.
Despite a sharp decline, several railway counters hit their 52-week high before taking a U-turn. IRFC, RVNL, Jupiter Wagons, and Ircon were among the ones who hit their 52-week highs in the opening trade.

Most of the above-mentioned stocks have been multibaggers and given up to 400% returns over the past 12 months. Government-owned IRFC has delivered 392% returns during this period, and the stock is currently trading in a strongly overbought zone. Meanwhile, RVNL’s gains have been to the tune of 280%. The returns by Texmaco, Titagarh Rail Systems, and Jupiter Wagons have been above 200% each. RITES and IRCTC have been laggards in the pack with 65% and 50% returns, respectively, on a 1-year basis.

With today’s declines, IRFC’s market capitalisation has slipped to 2.10 lakh crore, which is still above the market cap of Mahindra & Mahindra and Bajaj

Auto. On Friday, a 10% rally helped the stock cross the Rs 2 lakh crore m-cap, making it more valuable than 21 Nifty stocks.

The stock has seen an exponential rise in its price from its 52-week low of Rs 25.40 on March 28, 2023, jumping by over a staggering 500% in less than a year.(You can now subscribe to our ETMarkets WhatsApp channel)

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Secular Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – seculartimes.com. The content will be deleted within 24 hours.

Leave a Comment