India Business News: Railway stocks experienced a significant decline after a strong rally leading up to the Union Budget 2024. IRCON International saw the largest decline
Shares of railway PSUs, including IRFC, Rail Vikas Nigam, Ircon International, IRCTC, and RailTel Corporation, plummeted between 7-14% in today s trade due to profit booking.
Umesh Chowdhary, VC & MD of Titagarh Rail Systems, believes that the story of Indian railways has just begun and there is a long way to go for it to reach its peak. He mentions that strengthening the railway is crucial for achieving the targets set for the Indian economy. Regarding the Ayodhya theme, he sees it as a positive development for the nation and expects it to enhance domestic tourism. While competition exists in the industry, Chowdhary believes in staying ahead of the curve.
With todays drop, IRFCs m-cap has slipped to 2.10 lakh crore, which is still above the market cap of M&M and Bajaj Auto. On Friday, a 10% rally helped the stock cross the Rs 2 lakh crore m-cap mark, making it more valuable than 21 Nifty stocks.
Nitin Raheja discusses the valuations of defence stocks and railway stocks, emphasizing the lumpiness of these businesses and the potential for big variances in quarterly performance. He also mentions the signs of revival in the rural economy and the expected increase in spending as the elections approach. Raheja expects better results from FMCG players due to benign inflation in some commodities.