Pressure seen in railway stocks, know how much has fallen

After the results of the Lok Sabha elections, profit booking is being seen in railway stocks. It has affected the share price. Many major railway stocks have seen a steep decline. Some stocks have seen declines of up to 7 percent. Sources say that profit booking is taking place in railway stocks due to NDA getting fewer seats than expected. However, experts say that the NDA government is likely to form.

A big drop in these shares

Ircon International was down 9 percent when the market opened. This is the biggest decline in railway stocks. Shares of IRFC were down over 7 percent. Shares of Titagarh, RVNL and IRCTC also saw a decline of 6 percent. Shares of Texmaco Rail and Engineering fell more than 5 percent.

Tremendous growth was seen in the last one year

In the last one year, railway stocks have seen a good rise. However, some experts said that the boom has caused valuations to increase too much. Madhusudan Kela said that while he sees strength in state-owned stocks, he is not too bullish on railway stocks. The reason for the rise in railway stock is the government's focus on infrastructure. The government significantly increased capital expenditure, which had an impact on the railway companies.

More allocation in interim budget

In the interim budget on February 1, Finance Minister Nirmala Sitharaman allocated Rs 2.55 lakh crore for the railways for this financial year. Which in the last financial year was Rs. 2.4 lakh crore more than the allocation. This signaled that the government's focus would be on railways. Because of this, the shares of railway companies saw a surge.