Strong Sell-Off in Rail Stocks: IRFC, RVNL, Railtel Drop Sharply

15 Mar 2024 , 02:03 PM

In line with the sell-off seen in the larger markets, railway stocks such as IRFC Ltd., RVNL, and IRCON International Ltd., which saw gains of 200% to 300% through 2023, are also undergoing a significant correction during Wednesday's trading session.

IRFC's stock has dropped 9%, the most in a single day since December 2022. When compared to its peak of ₹192 earlier this year, the stock has dropped 35%.

In today's trading session, Railtel's shares have also dropped by 20%, marking the largest one-day decline the stock has experienced since its 2021 IPO.

In today's session, RVNL was also given a ₹106 Crore work order. It has received orders worth more than ₹2,000 Crore in the previous several days, beginning with the long weekend.

Other railway businesses' shares are likewise trading at a loss of 5% to 10%.

With the exception of IRCTC, the highlighted names listed above have all corrected from their recent peaks by 35% to 40%. Railtel is down about 40% as well as IRFC.

It should be mentioned that there isn't much market free float for companies like IRFC. Still, the government owns more than 86% of the IRFC.

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