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Railway sector stocks saw a sharp rally on Friday, May 16, 2025, with several counters gaining as much as 11%
Railway Shares Rally
Railway Stocks Rise: Railway sector stocks saw a sharp rally on Friday, May 16, 2025, with several counters gaining as much as 11% amid broad market optimism. This surge marked a strong end to the trading week, driven by renewed investor interest and positive market cues.
Leading the pack was Titagarh Rail Systems, which jumped 10.72% to close at Rs 895.85, followed closely by RVNL, which rose 10.45% to Rs 415.20. Other top performers included RailTel (up 8.52% to Rs 392.85), Jupiter Wagons (up 8.20% to Rs 420), and Ircon International (up 8.11% to Rs 191.90).
Broader Gains Across Railway Stocks
Gains extended to other railway and related companies as well. BEML climbed 7.01% to Rs 3,628.75, IRFC gained 6.75% to Rs 139, Texmaco Rail added 6.55% to reach Rs 164.90, IRCTC rose 3.35% to Rs 811.30, and CONCOR moved up by 2.31% to Rs 706.15.
What’s Fueling the Rally?
According to Ravi Singh, SVP of Retail Research at Religare Broking, the rally reflects the broader bullish sentiment in small-cap stocks, which have gained over 8% this week. Key geopolitical and economic developments — including a ceasefire between India and Pakistan and progress in US-India trade talks — have also lifted investor confidence.
Stock-specific triggers further bolstered gains. RVNL announced an Rs 116 crore order from Central Railway and also scheduled a board meeting for May 21 to consider a final dividend for FY25.
Sector Momentum Continues
This week, RVNL, RITES, Jupiter Wagons, and RailTel have each rallied between 25% and 30%, making them some of the top performers on the Nifty 500. Titagarh Rail has gained 34% this week alone.
However, analysts noted that the rally also comes after steep corrections in 2024. Most of these railway stocks are still down 35% to 50% from their all-time highs. For instance, Titagarh Rail remains 51% below its peak despite the recent recovery.
Technical Outlook RVNL: Further Upside Likely?
From a technical perspective, RVNL is trading above its 5-, 10-, 20-, 30- and 50-day simple moving averages (SMAs) but remains below its 100-, 150-, and 200-day SMAs. The Relative Strength Index (RSI) for the stock is at 53.2, suggesting it is neither overbought nor oversold.
Amol Athawale, VP of Technical Research at Kotak Securities, believes RVNL could move up to Rs 370 if it sustains above Rs 335–Rs 332, which are seen as key support levels. A drop below Rs 332, however, could signal vulnerability.
IRFC: Analysts Bullish on Short-Term Gains
Analysts are optimistic about IRFC as well. Ravi Singh sees a near-term upside target of Rs 135, with a stop loss at Rs 110. Kunal Kamble of Bonanza predicts the stock could move to Rs 157, provided it holds above Rs 109. Jigar S Patel of Anand Rathi highlighted support at Rs 118 and resistance at Rs 126, suggesting a potential breakout if the latter level is breached.
Technically, IRFC is trading above its 5-day SMA but below longer-term averages. Its 14-day RSI stands at 46.63, indicating neutral momentum.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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