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Stocks of companies which are large suppliers to Indian Railways reacted in a mixed fashion on Wednesday.
Kalindee Rail Nirman, a construction and engineering company, shed 6.55 per cent (Rs 7.35) and closed at Rs 104.85 to a share on the BSE. However, electronic components manufacturer Hind Rectifiers closed flat gaining only 25 paise over its previous close of Rs 47.3 to a share.
Texmaco Rail and Engineering Ltd, another construction and engineering company, lost six per cent and closed at Rs.66.85 to a share.
Analysts said the inability of Indian Railways to execute projects on time was the main reason why the market chose to short engineering and construction companies.
Commercial vehicle manufacturer BEML, which also manufactures locomotives, gained one per cent and closed at Rs 687.25 to a share.
Heavy Electrical equipment manufacturer ABB gained 1.72 per cent over its previous close and ended Wednesday at Rs 877 to a share.
Titagarh Wagons was the other loser of the day decreasing 4.25 per cent and closing at Rs 411.6 to a share.
Kernex Microsystems, a transportation services provider, also shed five per cent and closed at Rs 87.6 to a share.
“These stocks suddenly become favourites on the day of the railway budget in anticipation of good news which usually fizzles out once the railway's minister's speech is over,” said the Head of Research of a multinational brokerage.
> raghavendrarao.k@thehindu.co.in
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