Railway stocks lead the charge as PSUs gain up to 56% in one month. Should you buy?

Railway stocks dominated the PSUs that have offered double digit returns in April 2021, according to an analysis by ET Markets, with Railway Vikas Nigam leading the charge after shares rose more than 50% in a month. Other transport stocks, Ircon International and Indian Railway Finance Corporation, also posted healthy gains. Analysts attribute railway stocks’ success to the INR2.5tn ($34bn) capex budget for rail infrastructure outlined in the recent Indian budget. Analysts, however, urge caution as the government may sell-off PSU stakes through an initial public offering or offer-for-sale, negatively impacting stocks.

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