It is a celebration for investors who have bet on shares of companies involved in railways and related activities.
An ambitious railway-port economic corridor agreement to connect India, the Middle East and Europe, seen as an alternative supply chain route in a fully developed post-pandemic world order, was signed on the sidelines of the successful G20 summit in New Delhi – putting emphasis on rail infrastructure.
Shares of Indian Railway Finance Corp, the dedicated financing arm of Indian Railways, surged 10 percent minutes after the opening bell on Monday. The upper circuit is the highest possible price at which a company’s shares can be traded on that particular day.
Besides IRFC, Rail Vikas Nigam, RITES, Railtel Corporation of India and Titagarh Rail Systems were trading higher between 3 and 9 at the time of writing this report.
Coming back to the deal, Saudi Arabia, the European Union, India, the United Arab Emirates (UAE), France, Germany, Italy and the US have committed to working together to build the India-Middle East-Europe Economic Corridor ( IMEC).
The corridor is expected to boost economic development through improved connectivity and economic integration between Asia, the Arabian Gulf and Europe.
The IMEC will consist of two separate corridors: the Eastern Corridor connecting India to the Arabian Gulf and the Northern Corridor connecting the Arabian Gulf to Europe.
It will include a railway line which, when completed, will provide a reliable and cost-effective cross-border ship-to-rail transit network, complementing existing maritime and road transport routes, allowing goods and services to move to, from and between India. , UAE, Saudi Arabia, Jordan, Israel and Europe.
Along the rail route, they want to enable the laying of cables for electricity and digital connectivity, as well as pipelines for the export of clean hydrogen.
Meanwhile, broader Indian stock indices started Monday’s trading on a strong note, taking inspiration from the broadly successful G20 summit in New Delhi.
The consensus on the New Delhi Declaration by all G20 member states, despite a divided house, given the ongoing war in Ukraine and the West’s sanctions against Russia, the ambitious agreement for the economic corridor between the railways and the Middle East to connect India with the Middle East and Europe, and the launch of The Global Biofuel Alliance on the sidelines of the summit appeared to have attracted investors to bet on the market.
Sensex and Nifty were up 0.3-0.4 per cent from their Friday closes of 66,861.16 points and 19,910.10 points, with all sector indices in the green. Last week, Indian shares closed on a high, posting their best week in more than two months
Looking ahead, the August inflation data in India and the US, expected to be released on Tuesday and Wednesday, is likely to be the next market trigger for new signals.
India’s retail inflation rose sharply to 7.44 percent in July, breaching the RBI’s upper tolerance target of 6 percent, largely due to a sharp rise in prices of vegetables, fruits and pulses.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is published from a syndicated feed.)