IRFC, RITES, RVNL, Titagarh Rail shares: Railways stocks surge amid India-Gulf connectivity deal report

Shares of railways-linked companies such as Indian Railway Finance Corporation Ltd, RITES Ltd, Rail Vikas Nigam Ltd and Titagarh Rail Systems climbed up to 7 per cent in Friday's trade amid a report of possible infrastructure deal linking India with Middle Eastern countries. As per the report the US, Saudi Arabia and other nations are discussing linking India by port. The railway line could possibly reconfigure trade between the Gulf and South Asia.

RITES, a multidisciplinary engineering and consultancy organisation under the Ministry of Railways, saw its shares climbing 7.47 per cent to Rs 546 on BSE. Shares of Indian Railway Finance Corporation Limited (IRFC), which raises resources to meet the developmental needs of the Indian Railways, climbed 3.74 per cent to Rs 75.91. Rail Vikas Nigam Ltd, which is engaged in undertaking and executing, financing and implementing projects related to rail infrastructure, climbed 4.74 per cent to Rs 161.15. Titagarh Rail, a manufacturer of freight and passenger rolling stock, advanced 2.54 per cent to Rs 809.95.

According to US officials in the know, the talks have also included the United Arab Emirates and Europe but might not yield a concrete result to be announced during the G20 Summit in Delhi.

The G20 Summit in Delhi, held on September 9 and 10, would set the stage for further conversations. US President Joe Biden is scheduled to meet Prime Minister Narendra Modi today for a bilateral meeting at the prime minister’s residence after his arrival at 6:55 pm. President Biden might also have talks with Saudi Crown Prince Mohammed Bin Salman, who is scheduled to arrive in Delhi today at 4:50 pm.

The conversations regarding the infrastructure deal have been underway for months but are fluid, according to a report in Reuters.

This multi-national ports and rail deal can be seen as a counter to China’s Belt and Road global infrastructure push. President Biden is pitching Washington as an alternative partner and investor in the developing countries at the G20.

Biden is reportedly hoping to persuade fast-growing economies in Africa, Latin America and Asia and assert that there is an alternative to China’s Belt and Road project, which has left a host of developing countries in deep debt.

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