Railway stocks in limelight

Railway stocks are in a ‘mixed’ mode today. Stone India is up almost 5%, and Kalindee Rail is up 1.5% while others like Texmaco Rail is down 0.5% and so is Titagrah Wagons, down 0.5%. Kernex Micro is down over 3%.

This sudden spotlight on Railway stocks is a reaction to Railway Minister, Suresh Prabhu announced that new projects worth over Rs.10,000 crore will be launched and several old projects will be completed by the Indian Railway. He was speaking at the New Delhi railway station premises, after signing a MoU with Concor for upgrading of passengers amenities at the city station.

The market is not taking these utterances very seriously as historically, it has been seen that these statements rarely get translated into anything productive, like orders. So unless actual orders do not start coming in, the markets might stay pretty indifferent to this Rs10,000 crore plan