Railway stocks experienced a significant surge on Monday, witnessing an upswing of up to 17 percent as widespread buying propelled the Sensex beyond the 73,000 mark and the Nifty surpassed the 22,000 mark. Among the top gainers were IRFC, which rose by 17 percent, RVNL with an 11 percent increase, and IRCON, recording a 7 percent jump.
All these stocks reached new 52-week highs, with IRFC reaching these highs on substantial trading volumes. Texmaco Rail saw a 5 percent increase, Railtel rose by 4 percent, RITES increased by 4 percent, and Jupiter Wagons experienced a 5 percent uptick.
The surge in railway stocks coincides with India's transformative phase, marked by massive infrastructure development, including highways, logistics, ports, railways, and metro systems. The report by Prabhudas Lilladher highlights the country's focus on defense, production-linked incentives (PLI), and a substantial rise in domestic demand due to increasing income levels and a youthful population.
On Monday, the Sensex gained 593 points, reaching 73,162 points. Wipro recorded a 7 percent increase, and other IT heavyweights such as Tech Mahindra, Infosys, and HCL Tech rose by more than 2 percent.
The market rally, initially driven by momentum, is now finding support from fundamentals. The sharp increase in large-cap IT stocks, fueled by slightly positive management commentary, suggests that segments previously underperforming could surprise with an upside on news of a sector turnaround, according to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The IT index, which surged by 5 percent on January 12, is expected to remain strong, with HCL Tech and Wipro showing further potential on the upside, added Vijayakumar. The Nifty has broken out on the upside from the consolidation range, indicating signs of a further upward move.
(With Agency Inputs)
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