PSU Rail Sector Stocks to Buy: Finance Minister Nirmala Sitharaman is set to present the Union Budget in the Lok Sabha on July 23. Railway stocks are expected to perform better due to the comprehensive budget. Hence, brokerage firm Axis Direct has suggested buying RailTel shares for only 30 days.
Meanwhile, the BSE Sensex ended 53.07 points lower at 79,996.60, barely below the 80,000 mark, while the NSE Nifty rose 21.70 points to 24,323.85 on Friday, July 5.
Buying shares in public railway companies
The brokerage firm has suggested buying shares of RailTel Corporation of India for one month only. It has set a target price of Rs 585. On Friday, the company’s shares were last trading at Rs 520.2 apiece, up nearly 7 per cent on the Bombay Stock Exchange. This means the stock has the potential to generate returns of up to 13 per cent. RailTel shares hit an all-time high of Rs 535 during the session. The brokerage firm has also suggested maintaining a stop loss at Rs 497.
RailTel stock price history
In one month, RailRel shares have returned more than 45%. In one week, the stock has jumped nearly 12%. In one year, the company’s shares have returned about 4 times as much to its investors while increasing by 464% in two years.
RailTel’s current market capitalization is Rs 16,695.2 crore. Its 52-week high is Rs 534.4 each and its 52-week low is Rs 128.8.
The opinions/suggestions/advice expressed in this article are solely those of the brokerage firm. Zee Business suggests its readers to consult their investment advisors before taking any financial decision.