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After the domestic infrastructure and financial sector stocks, it is now the time for the railway stocks to catch up with the election frenzy.
Stocks of railway stocks were up for the third day in a row as investors increased exposure in them in anticipation of a stable government at the centre post the elections in May. "These stocks have run up in the last few days in the expectation that once a new government is in place these companies will get new orders from the government. These have run-up more on hopes than any fundamental change in the companies," said Sunil Jain, VP - equity research, Nirmal Bang Securities.
So far this week, Titagarh Wagons is up close to 48%. Kalindee Rail Nirman is up more than 27%. Kernex Microsystems has moved up 23%.
Hind Rectifiers is up about 15% while Texmaco Rail and Engineering is up over 10%. BEML has seen the lower gain at 3.4%.
Analysts said that since stocks in the election-favourite infrastructure and financial sectors have seen significant gains and are currently fairly-priced. Investors were therefore looking for opportunities in the beaten-down railway sector stocks.
These stocks had declined by as much as 10% in a single day in February this year post the interim railway budget announcement which lacked any significant measures to boost the prospects of the industry.
On Wednesday, Titagarh Wagons was trading up about 8% at Rs 193.50 per share. Kalindee Rail Nirman had gained 9.7% and was trading at Rs 87.50 per share. Kernex Microsystems was up 6.3% at Rs 46.25 per share. Hind Rectifiers had risen by 6.7% to Rs 43 per share. Texmaco Rail and Engineering had gained 3.8% to Rs 64.60 per share while BEML was up 1% to Rs 409.05 per share.
The BSE Sensex was up 0.5% at 22,882 while NSE Nifty was trading at 6,846 up 0.5%.
