Shares of Rail Vikas Nigam Ltd. gained as much as 7% on Tuesday, December 31, snapping a nine-day losing streak, after the company was declared the lowest bidder for a project on Monday.

RVNL had informed the exchanges on Monday that the company has been declared the lowest (L1) bidder for a Central Railway project worth ₹137 crore.

The project involves the design, supply, erection, testing and commissioning of a 132/55 KV traction substation, sectioning posts and sub-sectioning posts in the Bhusaval-Khandwa section. The contract is aimed at upgrading the 2×25 KV traction system, employing Scott connected transformers to support a loading target of 3,000 MT.

During its nine-day losing streak, shares of RVNL had declined 13%.
Along with RVNL, shares of RITES too have surged as much as 11% in Tuesday’s session, following Monday’s 4.5% drop.

Other railway peers like IRCON and RailTel are also trading with gains of up to 4%.

Indian Railways Finance Corporation (IRFC) is the only railway stock that is currently trading with losses in Tuesday’s session, down over 3%.

Railway stocks had a stellar first half of 2024, with stocks like IRFC, RVNL and IRCON gaining between 55% to as high as 130% during the January-June period this year.

However, these stocks have corrected between 35% to 40% from their respective record high levels.

Despite this correction, shares of IRFC are up 50% so far in 2024, while those of RVNL are up over 140%.