RVNL‘s share price continued to rocket on Monday morning going up over 15% to hit a new all-time high of ₹567.50. The massive rally in the stock comes as investors seem to be expecting increased allocation for railways in the upcoming budget scheduled to be presented on July 23. The company has also seen a horde of orders over the past few months.
The Investment: Similar optimism was seen around the stocks when the interim was about to be presented, with the stock gaining around 70% in the month of January. However, the stock slumped on the day of the budget as investors were not upbeat about the announcements made.
See Also: NHPC Shares Extend Gains To 4th Day As Brokerage Issues ‘Buy’ Call
But, if you invested ₹10,000 in RVNL on February 1 — when the interim budget was announced — when the stock closed at around ₹299, you would have received around 33 shares of the company. Today, those 33 shares would be worth over ₹18,400.
Expectations From The Budget: Markets experts believe that the allocation to the railways sector in the upcoming budget is expected to remain high despite pressures to reduce the pace of budgetary capital expenditure on infrastructure. The analysts expect the budget allocation to remain the same or be slightly higher this time around.
Price Action: RVNL’s share price was up 13.82% to trade at ₹558.90 in early trade on Monday.
Read Next: Titan’s Shares Sink 3% As Q1 Update Disappoints Brokerages, Investors
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.