Following the weak trends in the Indian stock market, railway stocks are under pressure since morning. Flagship railway stock, IRCTC is down by near 3%, RVNL share price is down by around 2.50%, IRCON International and Railtel Corporation shares are down by around 2%, RailTel Corporation share price, whereas IRFC share price today is down by around 1.90%.
According to stock market experts, railway stocks are under pressure due to a mix of fundamental corrections, margin pressures, and broader market headwinds. FII outflows, rebalancing valuations, and macro headwinds are some other reasons that are dragging the railway stocks, say experts.
Why are railway stocks falling today?
Highlighting the reasons behind the selling pressure in the railway stocks today, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “Railway stocks are currently under pressure and trading down significantly due to a mix of fundamental corrections, margin pressures, and broader market headwinds. Railway companies face margin compression due to lower-margin competitive open-bidding projects (moving away from purely nominated or high-margin rail contracts) and execution challenges in projects like Vande Bharat rollouts.”
“The railway sector faces a wider risk-off wave, FII outflows, and monthly F&O expiry volatility impacting high-beta and capex-heavy PSUs. Investors are closely tracking quarterly results and order book execution speed to see if revenue growth can justify previous high price-to-earnings (P/E) multiples,” said Anuj Gupta, a SEBI-registered market expert.
Is this an opportunity to buy?
If this fall in the railway stocks an opportunity for bottom fishing, Avinash Gorakshkar said, “Those looking for a value pick can look at IRFC shares. The company deals in the credit lending and some recent Capex pipeline announcement are expected to benefit IRFC. So, one can look at buying IRFC shares.”
IRFC share price target
Decoding the technical chart of IRFC shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “The stock is in ₹75 to ₹90 range. On breaking above ₹90 on a decisive basis, we can expect the IRFC shares to touch ₹100 and ₹110 in the near term.”
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
