Why IRFC share price is skyrocketing despite weakness in stock market today — explained

livemint.com:

Stock market today: Following weak global market sentiments after Tich downgraded US credit rating, Indian stock market extended sell off on second day in row on Thursday. However, despite weakness in stock market today, Indian Railway Finance Corporation (IRFC) share price has managed to atrract buying interest among Dall Street bulls. IRFC share price today opened upside and went on to hit intraday high of ₹44.65 apiece on NSE, logging near 12.50 per cent rise during Thursday deals.

While climbing to this intraday high, the Indian railways' PSU stock hit a new life-time high as well. According to stock market experts, IRFC share price is rising today due to one reason — market buzz about Indian Railways' plans to float tender worth ₹25,000 crore to procure 60,000 wagons during July to September 2023 quarter. This is going to benefit various companies like RVNL, Ircon International, JSL, Rites, BHEL, RailTel, etc.

They said that these companies are expected to benefit from ₹25,000 crore tender as these companies supply various equipment and designs to the Indian Railways' wagons. But, to meet their respective order book, these railway PSU companies need finance and that line of credit would be met through IRFC. So, bulk buying is taking place in IRFC shares.

Speaking on the reason for rise in IRFC share price today, Saurabh Jain, Vice President — Research at SMC Global Securities said, "IRFC share price is skyrocketing today due to Indian Railways' ₹25,000 crore tender buzz. Some sections of the media has reported at the beginning of Q2FY24 about Indian Railways plans to procure 60,000 wagons during July to September 2023. IRFC shares started to surge after that and it has been climbing to new life-time high since then.