Railways-related stocks in limelight; IRCON International zooms 20%

New Delhi: Railways-related stocks jumped on Monday after India along with the US and several major economies announced an ambitious India-Middle East-Europe Economic Corridor.

The stock of IRCON International Ltd zoomed 19.97 per cent, Rail Vikas Nigam Ltd jumped 16.40 per cent, Indian Railway Finance Corporation Ltd advanced 9.98 per cent and NCC Limited climbed 3.77 per cent on the ...

The 30-share BSE Sensex regained the 67,000 level. The benchmark jumped 528.17 points or 0.79 per cent to settle at 67,127.08. During the day, it rallied 573.22 points or 0.86 per cent to 67,172.13.

The Nifty ended 176.40 points or 0.89 per cent higher at 19,996.35. During the day, it hit an all-time high of 20,008.15, up 188.2 points or 0.94 per cent.

"Nifty cheered the huge success of the G20 summit by crossing the 20k mark during the day, as it would help India emerge as a superpower and would strengthen its position in the global arena. Various successful deals were struck in the summit, including in the field of railways, shipping, and biofuel among others which would help India build up its global position," Ajay Menon, MD & CEO, Broking & Distribution, MOFSL (Motilal Oswal Financial Services Limited), said.

India along with the US and several major economies on Saturday announced an ambitious India-Middle East-Europe Economic Corridor with Prime Minister Narendra Modi emphasising respect for the sovereignty and territorial integrity of all nations while promoting connectivity initiatives.

The new economic corridor, which many see as an alternative to China's Belt and Road Initiative, was jointly announced by the leaders of the US, India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy and the European Union on the sidelines of the G20 summit.

The corridor comprises an eastern corridor connecting India to the Gulf region and a northern corridor connecting the Gulf region to Europe, the Ministry of External Affairs (MEA) said, adding that it will include a railway and ship-rail transit network and road transport routes.

The countries signed the Memorandum of Understanding to establish the India-Middle East-Europe Economic Corridor which is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, the Arabian Gulf, and Europe.

"The G20 Delhi Declaration and India's diplomatic triumph can trigger continuation of the positive market mood and momentum. More importantly, the inclusion of the African Union in G20 and the proposed India-Middle East-Europe Corridor have positive economic and market connotations," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.