Rail Vikas Nigam Ltd (RVNL) shares are drawing attention for several positive developments. The share price saw an 11% increase in the last session, thanks to strong interest in railway stocks.
RVNL is set to be included in the MSCI India Index, alongside six other companies: Vodafone Idea, Dixon Technologies (India), Oil India, Oracle Financial, Prestige Estates, and Zydus Lifesciences. This inclusion in the August MSCI reshuffle means that RVNL shares could see passive investments of up to $219 million, with 31.8 million shares expected to be traded, as per Nuvama Alternative and Quantitative Research.
Additionally, RVNL has been upgraded to the large-cap segment of the Emerging Market India index by MSCI. These changes will take effect after the close of business on August 30, 2024.
Technically, RVNL’s share price is close to breaking out at ₹625. Sumeet Bagadia, Executive Director of Choice Broking, believes that surpassing this level could see the share price reach ₹700 in the near future. He recommends buying RVNL shares, setting a target price of ₹700 per share, and suggests a stop-loss at ₹540.
RVNL’s performance has been remarkable, with the stock more than doubling investor returns in the past three months. The share price has increased over 120% in this period and has seen a year-to-date rise of more than 217%. Over the past year, RVNL shares have delivered a multibagger return of over 356%, and an impressive 1,845% over three years.
On Monday, RVNL shares surged 11.01%, closing at ₹575.20 on the BSE. This rally followed the approval of eight projects by the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, with a total estimated cost of ₹24,657 crore.
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