RVNL shares rise 15%, hit record high for third session; here’s why

Shares of Rail Vikas Nigam Ltd (RVNL) zoomed over 15% in early deals amid buzz that 1.06 million shares of RVNL changed hands in a block deal today. However, Business Today could not independently verify the accuracy of such block deal reports. The railway stock rose 15.49% to hit a record high of Rs 567.60 today. The multibagger stock reached a record high for the third straight session.

Sentiment around the stock was also positive after reports said the Ministry of Railways plans to make another 10,000 non-AC coaches in 2024-25 and 2025-26 to meet the increasing demand and enhance passenger comfort for the common man on its network.

According to reports, the Ministry plans to roll out 4,485 non-AC coaches in the ongoing financial year (2024-25) and another 5,444 of these in 2025-26.

Total 49.61 lakh shares of RVNL changed hands amounting to a turnover of Rs 270.48 crore. Market cap of RVNL rose to Rs 1.16 lakh crore on BSE. RVNL shares have a one-year beta of 1.5, indicating high volatility during the period.      

The stock fell to a 52-week low of Rs 117.35 on July 13, 2023.

In terms of technicals, the relative strength index (RSI) of RVNL stands at 82.5, signaling it's trading in the overbought zone. Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

 RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.