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Analysts cautious on railway stocks despite resumption in train services

Analysts believe the resumption of passenger train services is like a sentimental boost from the government and can give a short-term bounce to the stocks, an extension of lockdown may dent sentiment

The outlook for the railway sector is set to improve but, from the markets perspective, there are better opportunities elsewhere.
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The outlook for the railway sector is set to improve but, from the markets perspective, there are better opportunities elsewhere.

Nikita Vashisht New Delhi
The government on Sunday gave a green signal to resume passenger trains on select routes from May 12, after nearly two months of halt, even as India continues to register spike in Covid-19 cases. The online bookings for the initial 15 trains will be done by Indian Railway Catering and Tourism Corporation (IRCTC), starting May 11.

These special trains will be run from New Delhi, and connect Dibrugarh, Agartala, Howrah, Patna, Bilaspur, Bhubaneswar, Secunderabad, Bengaluru, Chennai, Ranchi, Thiruvananthapuram, Madgaon, Mumbai Central, Ahmedabad, and Jammu Tawi. Fares will be equivalent to that of Rajdhani trains.

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