IRFC, RVNL, Titagarh shares crack up to 20% in 2 days. Here's why
RVNL), Indian Railway Finance Corporation (IRFC), RailTel Corporation of India, RITES and Ircon International plunged 11-17% over the two sessions, while private firms Texmaco Rail & Engineering and Titagarh Rail Systems shares have tanked up to 20%.
Extending their Tuesday losses, railway stocks fell sharply today with Titagarh as the top loser in the pack declining 10%. Meanwhile, RVNL (5%), IRFC (8%), RailTel (7%), Ircon (6%), RITES (1.4%) and Texmaco (6%) were also notable losers.
The correction comes on the back of a strong rally in these stocks which have hit their 52-week highs over the last one month.
The profit booking in the stocks was accompanied by large volumes with over 13.80 crore shares changing hands for IRFC while over 6.56 crore shares in the case of RVNL.
The situation was similar for other stocks as well.
On Monday, the railway stocks witnessed a strong upward movement helped by the G20 trigger where India, the US and Saudi Arabia announced plans to build an economic corridor that would link the Middle East with South Asia and eventually Europe. The stock made merry from the Saturday announcement with many stocks hitting their fresh 52-week highs on Monday.
Last week, Anand James, Chief Market Strategist at Geojit Financial Services cautioned investors on the likelihood of profit booking in the railway stocks.
«After gaining an average of 14% this week and more than 30% in the last one month, railway stocks may now come under some profit booking pressure. „4 out of 5 major railway stocks like RVNL, IRFC, IRCTC and Railtel are overbought with RSI above 75.
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