Rail sector stocks rose sharply on Tuesday, with Indian Railway Finance Corporation (IRFC) jumping over 5%, followed by significant gains by Rail Vikas Nigam Limited (RVNL), IRCON International and Indian Railway Catering and Ticketing Services (IRCTC). ).

At 12:34 p.m., shares of IRFC were trading 5.03 per cent higher at Rs 145.25 on the Bombay Stock Exchange (BSE).

IRFC shares rose after the government revised norms on dividend payments, share buybacks and stock splits in a bid to improve capital management and improve performance of their actions.

IRFC shares are up 45% year to date (YTD) despite falling 19% over the past six months.

Shares of RVNL also jumped sharply by around 3.5 per cent to Rs 430.45 after receiving a letter of acceptance (LOA) from South Central Railway worth Rs 294.4 crore.

“Engineering and Construction Contract (EPC) for doubling of track from Navipet Station (excluding) km 446.900 to Indalvai Station (incl) km 482.900 (33.70 km), {excluding of the Nizamabad yard from km 458.825 to km 461.125 (i.e. 2.3 km)} including the works of electrification and signaling of the South Central Railway in connection with the Mudkhed-Medchal Doubling Project in the State of Telangana,” RVNL said in an exchange filing.

Although the stock has fallen sharply from its 52-week high of Rs 647, it is up 137% on a cumulative basis and 161% year-on-year.

Shares of IRCON International also rose 4.17 per cent to Rs 192.15 during the trading session, tracking gains in other top railway stocks mentioned above. Note that Ircon International shares fell 10% in one month and more than 33% in six months.

Shares of Jupiter Wagons were also trading higher by over 3% at Rs 449.80. Meanwhile, IRCTC shares rose 1.66 per cent to Rs 810.05, riding the positive trend seen in equity markets, especially railway stocks.

Despite today’s rise, analysts have asked investors to trade with caution as today’s rally appears short-term and further corrections can be expected before a solid recovery.