Rail shares in focus after PM flags-off Rs 41K cr projects; RailTel up 16%

Shares of railway-related companies were in limelight in intra-day deals on Tuesday a day after Prime Minister Narendra Modi flagged-off and laid the foundation stone for 2,000 rail projects worth Rs 41,000 crore.

As part the ongoing modernisation drive, PM Modi said Indian Railways will be the source of massive investment in the next five years.

"India is one of the most promising investment destinations in the world today, and modern infrastructure is one of the biggest reasons for that. In the next five years, when thousands of railway stations have been modernised, the capabilities of Indian Railways will increase, triggering an investment boom," Modi said.

Meanwhile on the bourses today so far, RailTel Corporation of India zoomed nearly 16 per cent to an new all-time high of Rs 484. The stock then quoted 12 per cent higher at Rs 475. The counter has seen heavy volumes of around 12.26 lakh shares on the BSE, as against the two-week daily average volume of around 4.78 lakh shares.

The stock has seen a phenomenal run so far this calendar year, and has gained over 43 per cent in less than two months. In the last one year the share price has skyrocketed over 344 per cent.

Among others, Rail Vikas Nigam (RVNL), IRFC, IRCON International and Texmaco Rail were up 1-2 per cent each as of 11:20 am. Wheras, the S&P BSE Sensex was up 0.1 per cent (62 points) at 72,858.