Unveiling the Reasons: IRFC Shares Surge Over 7% to Reach a 52-Week High Today

Indian Railway Finance Corporation (IRFC) has continued its impressive performance on the stock market, reaching a new 52-week high on Friday.

As of 11:10 am, IRFC shares were trading 7.19% higher at over Rs 156 each on the Bombay Stock Exchange (BSE). During early trade, the stock surged to Rs 157.60, marking a fresh 52-week high. The current market capitalization of the company exceeds Rs 2 lakh crore.

Notably, IRFC shares have begun the calendar year with strong momentum, building on the multibagger returns provided to investors in 2023. In the last five trading sessions alone, the stock has surged over 28%, with an overall gain of 55% in January.

Looking at a broader perspective, the stock has witnessed an impressive rise of over 376% in the past 6 months and 371% over the last year.

Reasons Behind IRFC Shares Rally:

IRFC shares are not the only ones experiencing upward momentum; other railway PSUs like RVNL, IRCTC, and IRCON International are also on the rise. Analysts attribute this to optimism surrounding the railway sector in anticipation of the Interim Budget 2024.

Many analysts predict that the government will announce a higher capital expenditure (capex) for Indian Railways, emphasizing infrastructure development.

In the Union Budget 2023-24, the capital outlay for Indian Railways increased significantly to Rs 2.40 lakh crore, a nearly 75% surge.

Vishal Periwal, Sector Analyst (Infra) at IDBI Capital, stated, "With the Budget around the corner, railway stocks have been witnessing sharp gains. It could be due to anticipation of a record budgetary allocation for the sector," in a statement to Business Today.

Analysts foresee further momentum for IRFC as the budget approaches, expecting record budgetary allocations. However, they caution investors to remain vigilant since the stock is currently in an overbought territory, urging a balanced approach despite bullish sentiments.

irfc share price

hdfc bank share price nse

hdfc bank share price

lic share price

rvnl share price

ireda share price

hdfc share price

irfc

sbi share price nse

iex share price

ircon share price

sjvn share price

l&t share price

hudco share price

icici bank share price nse

bank of maharashtra share price

bank of india share price

idfc bank share price

mstc share price

ireda

indusind bank share price

rvnl

bajaj finserv share price

rcf share price

rail vikas nigam share price