Lok Sabha Elections 2024: Railway stocks soar on exit polls; IRFC, RVNL among top gainers
Indian railway stocks surged by over 13 per cent on Monday after several exit polls forecasted a decisive victory for the Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government in the Lok Sabha Elections 2024. Leading the gains were Titagarh Rail Systems, reaching a 52-week high, along with Rail Vikas Nigam Limited (RVNL) at 11 per cent, Indian Railway Finance Corporation (IRFC) at 12.5 per cent, and Jupiter Wagons.
Other railway stocks that saw gains included IRCON International (6.26 per cent), RITES (3.52 per cent), Indian Railway Catering and Tourism Corporation or IRCTC (3 per cent), and Texmaco Rail & Engineering (5.28 per cent).
If the Modi government retains power, the railways sector is anticipated to be a leading beneficiary. Many railway stocks have given multibagger returns in the last 12 months.
According to an average of 12 exit polls, the NDA is likely to win at least 363 seats this time. Although the NDA might not reach its ambitious goal of ‘Abki Baar 400 Paar,’ traders anticipate that the Nifty index will surpass 24,000 this week.
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Although exit polls place the Bharatiya Janata Party (BJP) in a leading position, the final results are still pending. According to Hong Kong brokerage CLSA, a favourable outcome could boost investor confidence in India’s economic growth. This increased confidence might motivate investors to expand their investments beyond just stocks that are directly influenced by government policies.
Following the exit polls, it was anticipated that the market’s reopening would trigger a bullish surge. The headline index, Nifty, reached a new all-time high of 23,338.70, climbing over 800 points. Meanwhile, the S&P BSE Sensex soared by 2778 points, achieving a new peak of 76,738.89.