On Monday, after exit polls forecasted a decisive victory for the incumbent government, Indian railway stocks surged by over 13 per cent on Monday. The top guns here were Titagarh Rail Systems who reached a 52-week high, which was followed by Rail Vikas Nigam Limited (RVNL) at 11 percent, Indian Railway Finance Corporation (IRFC) at 12.5 per cent, and lastly the Jupiter Wagons.
RVNL shares reached a record high with m-cap surging to INR 85,000 crore mark.
IRCON International (6.26 per cent), RITES (3.52 per cent), Indian Railway Catering and Tourism Corporation (IRCTC, up 3 per cent), and Texmaco Rail & Engineering (5.28 per cent) were other railway stocks that witnessed an upside.
According to a credible source, the railways sector is anticipated to become a leading beneficiary under the third tenure of the Modi government. This is why many railway stocks have given investors multibagger returns in the last 12 months.
Furthermore, as per an average of 12 exit polls, the NDA is likely to win at least 363 seats this time. Having said that, even if the NDA might not reach its ambitious goal of 'Abki Baar 400 Paar,' traders anticipate that the Nifty index will overarch 24,000 this week.
This is because the final results are still pending, although exit polls place the BJP as the frontrunner in this 2024 general election. Additionally, a lucrative outcome could boost investor confidence in India’s economic growth, according to Hong Kong brokerage CLSA. This has definitely increased the much needed confidence that might motivate investors to expand their investments beyond just Modi related stocks which are influenced by government policies directly.
Moreover, it was anticipated that the market's reopening would trigger a bullish surge following the exit polls. Speaking of which, the headline index - Nifty - reached a new all-time high of 23,338.70, fostering an upward climb of over over 800 points. And at the same time, the S&P BSE Sensex showcased an upsurge by 2778 points, achieving a new peak of 76,738.89.
