IRCON International, Rail Vikas Nigam Ltd (RVNL) and Indian Railway Finance Corp (IRFC) surged up to 20% on Monday as the market participants displayed excitement over the announcement of the India-Middle East-Europe Economic Corridor (IMEC). 

Shares of IRCON and IRFC settled the trading session locked at the upper circuit level of 20% and 10%, respectively. Both stocks ended at respective all-time high levels of Rs 160.35 and Rs 84.80. 

RVNL saw its shares close at Rs 190.50, 16.98% higher than the previous closing price on the National Stock Exchange (NSE), after hitting a record high of Rs 191.75 during the intraday session. All three stocks have gained more than 150% in 2023 so far.

IRFC is a Miniratna public sector enterprise that finances the expansion and outlay of Indian Railways. RVNL works as the construction arm of the Ministry of Railways to develop railway infrastructure. IRCON International is a turnkey construction company specialising in the development of railways, highways, EHV sub-station and metro rail.

On Saturday, September 9, the Governments of the Kingdom of Saudi Arabia, the European Union (EU), the Republic of India, the United Arab Emirates (UAE), the French Republic, the Federal Republic of Germany, the Italian Republic, and the United States of America (USA) inked a Memorandum of Understanding (MoU) to collaborate to establish the IMEC. 

The first-of-its-kind economic corridor will connect shipping and rail lines from India to Europe via the United Arab Emirates, Saudi Arabia, Jordan, and Israel, stimulating economic development through enhanced connectivity and economic integration. 

The IMEC will comprise two corridors: the Eastern corridor connecting India to the Arabian Gulf and the Northern corridor connecting the Arabian Gulf to Europe. It is to be noted that these are just announcements, and no company has directly been awarded any specific contract for this corridor.