The Hindu Business Line : Vote on account boosts shares with railway links

Mumbai, Feb. 9 Expecting a concession in the vote on account for the Railways later this week, share prices of companies supplying railway stocks moved up to 20 per cent on Monday.

“Every year, one week before the Budget, these stocks move up in expectation of capex plans and tax gains. Last year lots of projects were announced in the areas of signalling, bridges (to avoid accidents on old bridges) etc, but this year we don’t expect any major announcements of capex expansion, since it is only a vote on account,” said Mr Amitabh Chakraborty, President (Equity), Religare Securities.

The vote on account for the Railways will be passed on February 13.

Railway wagons manufacturer Titagarh Wagons gained 20 per cent on the BSE to close at Rs 212.80.

Kernex Microsystems, which manufactures collision prevention system for the railways, gained 20 per cent. The stock closed at Rs 73.80.

Public sector railway stock manufacturer Bharat Earth Movers Limited gained 7.82 per cent to close at Rs 371.10. BEML manufactures integral rail coaches, electric multiple units, rail buses, track laying equipment and overhead equipment inspection cars. Government of India owns 54 per cent stake in the company.

Meanwhile, the BSE capital goods index, of which BEML is a constituent, moved up by 3.59 per cent.

Kalindee Rail Nirman gained 15.68 per cent to close at Rs 147.55. The company is engaged in manufacturing and installation of signalling and telecommunication equipment and execution of gauge conversion projects.

Integra Hindustan, which produces railway signalling systems, closed at Rs 122 with a gain of 1.54 per cent.

Manufacturer of rail freight cars Texmaco gained 6.31 per cent to close at Rs 6.31.

Hind Rectifiers, which manufacturers a wide range of products used for railways including AC electric locomotives, gained 6.48 per cent to close at Rs 37.80.

Stone India gained 4.83 per cent. The company manufactures equipment such as air brakes, brake regulators and alternators.

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