Shares of RITES were trading lower in Monday’s session, slipping over 2%after a strong run-up over the past five trading sessions. The stock was trading at Rs 247.20down 2.16%as of 9:38 am on December 29according to NSE data. The decline comes after the stock had gained nearly 8% over the last five days.
Market participants attributed the dip largely to profit booking following the recent rally. RITES had seen sustained buying interest last week after the company announced a letter of award worth $35.2 million from Money Capital (Pty) Ltd., South Africafor the supply and commissioning of diesel-electric locomotives. The order had triggered a sharp upward move in the stock.
Earlier last week, RITES shares surged as much as 8.5% intraday to Rs 252.30marking the company’s biggest single-day rise since May 16. The stock later pared some gains but still ended the session up over 6%outperforming the broader market. At the time, RITES had also recorded elevated trading volumeswith the stock trading at nearly 12 times its 30-day average volumeindicating heightened investor activity.
Despite the recent bounce, RITES shares remain down around 15% on a year-to-date basiscompared with a 10.5% gain in the Nifty 50 over the same period. The company currently has a market capitalisation of approximately Rs 11,897 crore.
In Monday’s session, the stock saw mild selling pressure after the recent rally, while no fresh company-specific announcements were disclosed. The movement reflects short-term price adjustment following the sharp gains seen over the previous week.
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