How will be the performance of railway sector shares after the budget?
Many important announcements will be made for the railway sector in the budget to be presented on 22 July 2024. This budget will take new steps to modernize the Indian Railways and its details. Investors need to know what impact this will have on the stocks of the railway sector. Let us analyze the potential performance of major railway sector stocks RBNL, IRFC, Ircon International Limited, Texmaco Rail and Engineering Ltd, and IRCTC.
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RBNL (Reliance Infrastructure)
Possible impact factors:
- Increased allocation for railway infrastructure.
- Announcement of new projects and strategies for their implementation.
Potential performance:
- Share price appreciation: If the budget makes a large allocation for railway infrastructure, RBNL's share price may rise by 5-7%.
Investor sentiment:
- Investors will have more confidence in RBNL as the company will get profit from new projects.
IRFC (Indian Railway Finance Corporation)
Possible impact factors:
- New schemes for railway financing.
- Special provisions for loans and investments.
Possible performance:
- IRFC share price is likely to rise by 4-6% if special provisions are made in the budget for financing railway projects.
- Investors' confidence will increase due to the company's financial stability and investment plans.
Ircon International Limited
Possible impact factors:
Budget allocation for details and modernization of railway projects.
Announcement of new construction projects.
Potential performance:
Share price increase: Ircon shares may rise by 6-8% if there is significant allocation for new projects in the budget.
Investor Emotion: Investors will see huge potential in the company's future, which will increase investor confidence.
Texmaco Rail and Engineering Ltd
Possible impact factors:
New coach manufacturing and modernization plans.
New investments for growth of railway infrastructure.
Possible performance:
Share price increase: Texmaco shares may rise by 4-6% if special provisions are made for new manufacturing plans in the budget.
What Investors Think: The company's details and modernization plans will increase investor confidence.
IRCTC (Indian Railway Catering and Tourism Corporation)
Possible impact factors:
Special schemes for railway tourism and details of catering services.
Announcement of new tourism projects.
Potential performance:
Share price rise: IRCTC shares may rise by 5-7% if the budget includes special plans for the details of tourism and catering services.
What investors think: Investors will see great potential in the future of the company, which will increase investor confidence.
Conclusion
The announcements made for the railway sector in the budget of 22 July 2024 will have a significant impact on major railway stocks. Plans for new projects, modernization and financial support will increase investor confidence, which has the possibility of growth in all major stocks. For long-term investors, this time can be a good opportunity to invest in the railway sector, as there is a possibility of stability and growth in this sector due to the plans of the government.