Railway Stock Today: Railway shares have fallen as much as 33% in the past two days, as the marginal victory of Prime Minister Narendra Modi's coalition raised concerns about policy continuity. Titagarh Railway System It has fallen nearly 33% in the last two days and IRCON International has fallen over 26%.
RailTel Corporation And IRCTC also witnessed a drop of over 19% in the last two days, while ritesIRFC, Rail Vikas Nigam Limited, Texmaco Rail Systemand Jupiter Wagons suffered a decline of 18% to 23%.Railway shares fell by up to 17% on Wednesday.
The election results showed that the Bharatiya Janata Party (BJP) won 240 seats, short of the 272 seats needed for a simple majority in the 543-member lower house of Parliament.
“Despite a reduced majority, we expect the policy agenda of Modi 2.0 (investment-led growth, capital spending, infrastructure creation, manufacturing, etc) to continue, albeit with some changes,” brokerage firm Motilal Oswal said, reports ET.
Motilal Oswal also commented on the future performance of various sectors, saying, “Sectors with extremely high valuations and recent strong performance, such as industrials, railways, defence and public sector undertakings, could see further softening in valuations before they become attractive again from a risk-reward perspective.”
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Other PSU stocks including Cochin Shipyard and Bharat Dynamics fell over 10%, while the BSE PSU index declined over 4%. Stocks like NBCC, HUDCO, Indian Bank and REC declined over 5%.
Additionally, stocks of NTPC, Concor, Hindustan Copper, GIC, Central Bank of India, NMDC, PowerGrid, PFC, BEL, PNB, UCO Bank, Union Bank of India, HAL, BHEL and SJVN fell by more than 3%.
Despite the market correction, analysts remain bullish on PSUs as the BJP is set to return to power. Manish Sonthalia, Chief Investment Officer, Emkay Investment Managers, expects strong performance from BFSI, PSU and industrial sectors.
“BFSI has led earnings growth and has seen valuations improve. Investment-related themes will come to the fore over the next 3 to 5 years with power capex building up. We are rerating PSUs as some of the government entities will benefit from exposure to sectors such as defence, oil marketing companies and power financiers,” Sonthalia said.
The chief investment officer (CIO) of Quant Mutual Fund believes that Modi's return to power can be seen as an endorsement of the previous government's policies, indicating that infrastructure, manufacturing and public sector undertakings will remain the key themes.
RailTel Corporation And IRCTC also witnessed a drop of over 19% in the last two days, while ritesIRFC, Rail Vikas Nigam Limited, Texmaco Rail Systemand Jupiter Wagons suffered a decline of 18% to 23%.Railway shares fell by up to 17% on Wednesday.
The election results showed that the Bharatiya Janata Party (BJP) won 240 seats, short of the 272 seats needed for a simple majority in the 543-member lower house of Parliament.
“Despite a reduced majority, we expect the policy agenda of Modi 2.0 (investment-led growth, capital spending, infrastructure creation, manufacturing, etc) to continue, albeit with some changes,” brokerage firm Motilal Oswal said, reports ET.
Motilal Oswal also commented on the future performance of various sectors, saying, “Sectors with extremely high valuations and recent strong performance, such as industrials, railways, defence and public sector undertakings, could see further softening in valuations before they become attractive again from a risk-reward perspective.”
Also check this | share market today live update
Other PSU stocks including Cochin Shipyard and Bharat Dynamics fell over 10%, while the BSE PSU index declined over 4%. Stocks like NBCC, HUDCO, Indian Bank and REC declined over 5%.
Additionally, stocks of NTPC, Concor, Hindustan Copper, GIC, Central Bank of India, NMDC, PowerGrid, PFC, BEL, PNB, UCO Bank, Union Bank of India, HAL, BHEL and SJVN fell by more than 3%.
Despite the market correction, analysts remain bullish on PSUs as the BJP is set to return to power. Manish Sonthalia, Chief Investment Officer, Emkay Investment Managers, expects strong performance from BFSI, PSU and industrial sectors.
“BFSI has led earnings growth and has seen valuations improve. Investment-related themes will come to the fore over the next 3 to 5 years with power capex building up. We are rerating PSUs as some of the government entities will benefit from exposure to sectors such as defence, oil marketing companies and power financiers,” Sonthalia said.
The chief investment officer (CIO) of Quant Mutual Fund believes that Modi's return to power can be seen as an endorsement of the previous government's policies, indicating that infrastructure, manufacturing and public sector undertakings will remain the key themes.