• Shares of RVNL, IRFC, IRCON are rising as market is expecting some big rail infra related announcement in upcoming budget 2023, say experts
Shares of Indian Railway Catering and Tourism Corporation or IRCTC remained sideways throughout the year 2022. In fact, the stock remains a favorite sell of the stock since October 2021. However, in the last few sessions, IRCTC share price is trying to come out of the base building mode. Interestingly, IRCTC shares have failed to gain momentum despite other rail stocks like Rail Vikas Nigam Ltd or RVNL, Indian Railway Finance Corp ort IRFC, IRCON International, etc posting strong returns in the last one month. RVNL share price has risen by 85 per cent in the last one month, IRFC share price has risen by close to 45 per cent in the last one month, while IRCON International share price has risen by over 30 per cent in the same period. Horizon.
According to stock market watchers, IRCTC is a railway tech stock while other rail stocks like IRCON International, RVNL, IRFC, RailTel etc are railway infra stocks. He said that the market is buzzing with speculation that there may be some big announcement related to rail infra by Finance Minister Nirmala Sitharaman in Budget 2023. He added that IRCTC shares have failed to pick up momentum as it is basically a rail tech stock which primarily gains traction from online rail ticket bookings. Therefore, RVNL, IRFC, RailTel, IRCON International etc. will be the beneficiary companies in case the budget is met on 1st February 2023. But, IRCTC will not benefit from the expected announcement, hence IRCTC shares have not gained momentum. The moves other rail stocks have made in the last one month.
Talking on the reason why IRCTC share price is not keeping pace with other rail stocks, Manoj Dalmia, Founder and Director, Proficient Equities said, “The rail stocks which have seen a sharp rally in the last one month are basically rail stocks. Infra are in business. Market is expecting that the upcoming budget will be an infra centric budget and hopes are high that finance minister may announce some big rail infra projects in upcoming budget 2023. In fact these rail infra stocks pre budget The uptrend has started a little earlier and this uptrend may continue further.
On railway stocks to buy ahead of Union Budget 2023, Ravi Singhal, CEO, GCL Securities, said, "IRFC can be viewed as IRFC providing credit lines to rail infra companies. Hence, IRFC will benefit more from the announcement (if it comes) than any other rail infra companies. So, my bet is behind IRFC because any company working in expected rail infra project will need finance and after getting project order IRFC will approach them .
However, some market experts are expecting a rally in IRCTC shares as well.
Speaking on IRCTC share price outlook, Mehul Kothari, AVP - Technical Research at Anand Rathi said, "IRCTC shares recently gave fresh breakout after taking support at 200 days moving average. IRCTC share in near term ₹ 780 per level. One can buy IRCTC shares around ₹740 levels while maintaining a stop loss at ₹720 levels."
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