IRFC, IRCON to RVNL - Railway stocks slump 4-8% on profit booking; this is what analysts expect going ahead

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Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam, IRCON International, and RailTel Corporation of India slumped 4% to 8% on Tuesday's trading session. Analysts say that although the performance may not be as strong as the current run from the previous week, but railway stocks are expected to be in an uptrend moving forward. Corrective phases in midcaps and small caps were another factor weighing on the railway stocks.

Ruchit Jain, Lead Research Analyst at 5paisa said that the Nifty Midcap index has started a corrective phase within an uptrend as the momentum readings were quite overbought. The railway stocks too had sharp run up in last few weeks and because of the corrective phase in the midcaps and small caps, these stocks too could witness some pullback in the short term. Although, the long term uptrend remains intact in the PSU names and hence, this should just be seen as a correction within an uptrend.

Also Read: Stock market today: Midcaps crack 3%, smallcaps plunge 4% as stock market sentiment turns negative In September so far, IRFC share price gained 54%, Rail Vikas Nigam share price rose 25%, Ircon International share price gained 27%, RailTel share price increased by 1%. As per trendlyne data, IRFC stock price rose 233.6% and outperformed its sector by 208.7% in the past year. Rail Vikas Nigam stock price rose 372.9% and outperformed its sector by 328.3% in the past year.