IRFC, RVNL to IRCTC: Is it wise to buy railway shares after approval?

BUSINESS: Stocks to buy- Railway stocks will be in focus on Monday as the Cabinet Committee on Economic Affairs approved eight new railway projects on Friday. Giving information about the outcome of the meeting, Railway Minister Ashwini Vaishnaw said that these railway projects worth Rs 24,657 crore will cover 14 districts in seven Indian states. According to stock market experts, the new railway projects will be a big boost for railway PSUs as these companies are expected to get new business due to the announcement of these railway infrastructure projects. He also said that PSU stocks have taken a huge blow after the weak Q1 results of the 2024 season due to policy paralysis caused by the Lok Sabha elections. The proactive approach of the government is expected to boost the operations of these railway PSUs. Therefore, in the medium to long term, quarterly figures of state-owned railway companies can be expected to improve in the coming quarters.