Railway Stocks In Focus: IRFC, IRCTC And RVNL On The Fast Track

Railway stocks are in focus on Friday's trade, with select stocks such as RVNL, IRCTC and IRFC trading with gains of up to 12%.

This comes on the back of the new railway fares announced by the central government, which comes into effect today.

Shares of RVNL have gained as much as 12%, as sentiment turns positive within the Railway basket. The stock is currently trading at Rs 384, account for gains of more than 11%.

A similar tally has been witnessed in IRFC, which was an early gainer in trade and has been up ever since. The stock is currently trading at Rs 131, which accounts for gains of more than 8.5%.

Even railway ticketing platform IRCTC is up by almost 4% as new railway fares could aid the company's topline.

Under the rationalised fare structure, long-distance travellers will be required to pay more, while ticket prices for suburban services as well as short-distance travel continue to remain the same.

The latest fare hike by Indian Railways applies to longer journeys and higher classes. 

There is no increase in Ordinary Class for up to 215 kms. But they will be required to pay 1 paise per kilometre beyond 215 km.

Moreover, ticket prices for Mail and Express trains (non-AC) have been hiked by 2 paise per kilometre.

For AC classes, the fare has been increased by 2 paise per kilometre.

Under the revised structure, a passenger will be required to pay Rs 10 extra per ticket for both AC and non-AC coaches for a 500-kilometre journey.

The ticket prices will remain unchanged to benefit a large section of daily and short-distance travellers.

This means that there is no hike in ticket prices for a journey up to 215 kms in the Ordinary Class.

Further, suburban train fares will continue to remain the same, including the price for the monthly season ticket.