Rail stocks back on track after three-day slump

Cimmco, Texmaco Rail,Titagarh Wagons, Stone India, Kernex Microsystems and Kalindee Rail up 3-10% on BSE.

Shares of rail related companies are back on track and trading higher between 2-10% on the bourses after a three-day fall.

Cimmco locked in upper circuit of 10% at Rs 78.50 on BSE. Texmaco Rail and Engineering rallied 8% to Rs 147, followed by Titagarh Wagons surged 7% to Rs 622, Kernex Microsystems gained 5% at Rs 49, Kalindee Rail Nirman (Engineers) and Stone India up 3% each at Rs 139 and Rs 82 respectively. The S&P BSE Sensex was up 0.95% at 29,019 at 1302 hours.

In past three trading sessions, most of these stocks had fallen between 9-15% till yesterday. Titagarh Wagons, Cimmco and Kalindee Rail Nirman (Engineers) plunged 15% each. Texmaco Rail & Engineering dipped 14%, while Stone India slipped 13% and Kernex Microsystems by 9% as compared to less than 1% fall in benchmark index.

In its Five Year Action Plan, Railways expects to increase the daily passenger capacity from 21 million to 30 million, increase the track length by 20% from 1,14,000km to 1,38,000km and raise freight carrying capacity from 1bn to 1.5bn tonne. Significantly, the Five Year Plan envisages making Railways financially self-sustainable, the broking firm Angel Broking said in a client report.

Railways intends to invest Rs 856,020 crore in the five years 2015-19 of which major investments would be towards network decongestion, expansion, safety, rolling stocks and station and logistics development. Railways expect to mobilize resources through multitude of sources including multilateral agencies and partnering with stakeholders such as States and PSUs amongst others, added report.