Ahead of Budget 2018 mixed performance for rail-related stocks

Analysts suggest one needs to be selective and pick only those stocks where there is earnings visibility and on-ground execution of projects

It has been a mixed performance for railway-related stocks at the bourses thus far in calendar year 2018 (CY18) with Larsen & Toubro (L&T), ABB India and Kernex Microsystems rallying up to 25% ahead of the budget 2018 presentation on February 1.

On the other hand, Hind Rectifiers, Titagarh Wagons, BEML, Stone India, Stone India and Zicom Electronic have slipped 3% to 17%. By comparison, the S&P BSE Sensex and Nifty 50 index have gained 6% thus far in CY18.

The rally comes amid reports that