RVNL‘s share price recovered in the late hours of trading on Wednesday after it crashed heavily on Tuesday along with other railway stocks.
What Happened: The railway company on Wednesday informed the exchanges that it was declared the lowest bidder for an order from the Dakshin Haryana Bijli Vitran Nigam Limited. The order is for the implementation of SCADA (Supervisory Control and Data Acquisition), OMS (Outage Management System) and DMS (Distribution Management System) in the Gurugram Revamped Distribution Sector Scheme. The filing came just before market close on Wednesday.
The order is worth around ₹124.36 crore and is scheduled to be completed in 30 months. The stock made history by crossing the ₹400 mark for the first time on Monday, driven by exit polls predicting a decisive victory for the incumbent government in the 2024 Lok Sabha elections. The optimism around political stability and policy continuity spurred a massive surge in these stocks.
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However, on Tuesday, the stock experienced a significant downturn when the actual numbers of the election results were far from the predictions made by the exit polls. This discrepancy led to a heavy fall in the stock, as investors reacted to the unexpected outcomes and reassessed the potential for political stability and its impact on the market.
Price Action: RVNL's share price was up 0.51% to close at ₹353.30 on Wednesday.
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