RVNL lead gains after cabinet approves ₹24,657 Crore projects

12 Aug 2024 , 11:17 AM

Railway PSUs are trading higher on Monday after a period of selling pressure over the previous two weeks. Shares of Rail Vikas Nigam (RVNL) are outperforming peers such as IRCON, IRFC, and RailTel.

RVNL shares rose as high as 9% on Monday, marking only the second time in the last nine trading sessions that the company has witnessed gains.

At around 11.00 AM, RVNL was trading 8.56% higher at ₹562.50, against the previous close of ₹518.15 on NSE. The counter touched an intraday high and low of ₹569.75, and ₹522.40, respectively.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, authorised eight Ministry of Railways projects worth ₹24,657 Crore on Friday.

The planned initiatives will improve logistical efficiency by connecting unconnected areas and strengthening transportation networks, resulting in streamlined supply chains and faster economic growth.

These projects are scheduled to be finished by the fiscal year 2030-2031.

IRFC shares, like RVNL, are trading up 2%. The railway financier will also release its quarterly earnings later this evening.

IRCON shares are trading with marginal gains, while RailTel shares are up more than 2% on Monday.

RVNL shares had fallen over 20% from their record highs as of Friday’s close, while IRCON and IRFC shares had dropped 15% and 22%, respectively, from their peaks in mid-July.

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