PSU Block Deal: RVNL shares surge 35% in just two sessions, reaching a new high.

 

8/7/2024,

 

1.5 crore equity shares, or 0.8% of the total equity of the company, were exchanged in a block trade at RVNL. An average of ₹560 per share was exchanged for the shares.

 

On Monday, July 8, shares of the state-owned Rail Vikas Nigam Ltd. (RVNL) are up 15%, trading far above the ₹550 threshold. For the third straight day, the multi-bagger stock is trading at a record high.

 

Today's trading activity at RVNL included a block deal involving the exchange of 1.5 crore equity shares or 0.8% of the company's total equity. An average of ₹560 per share was exchanged for the shares.

 

In this transaction, the buyers and sellers are unknown. Trade in the stock increased following the block deal.

 

 

Following the company's signing of a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd. (DMRC) for participation in future projects in India and beyond, sentiment surrounding the stock was also encouraging.

 

According to other estimates, the Ministry of Railways plans to build an additional 10,000 non-AC coaches in 2024–2025 and 2025–2026 to fulfil the growing demand and improve traveller comfort on its network for the average person.

 

According to the sources, the ministry intends to introduce 5,444 non-AC coaches in FY26 and 4,485 non-AC coaches in the current fiscal year.

 

RVNL is clearly overbought, as seen by the charts' relative strength index (RSI) of 82.5 for the counter. This suggests that a stock decline may occur.

 

 

Based on a one-year beta of 1.5, it seems that there was a lot of volatility in RVNL shares during that period.

 

Simple moving averages (SMAs) with intervals of 5, 10, 20, 30, 50, 100, 150, and 200 days all indicated that the counter was increasing.

 

72.84% of RVNL was owned by the government by the conclusion of the quarter in March 2024.

 

Shares of RVNL were trading 12.90% higher at ₹554.40. The stock has gained 350% during the last 12 months. After the stock's increase on Monday, its market valuation has crossed ₹1.16 lakh crore.