Cheap Web Hosting Sites

Social Icons


Tuesday, March 13, 2012

Rail budget is becoming a non-event

There were days when rail stocks- stocks which are affected with rail budget as they are commonly called , would start rising in the anticipation of the rail budget.
Now a day’s rail budget has become a non-event and investors have learnt that they should buy rail stocks with longer perspective and not just in anticipation of the rail budget.
Stocks like Texmaco, Kalindee rail, Titagarh wagons, kernex Auto, BEML are few names to take.
Tomorrow when rail minister shall table the rail budget in the parliament rail stocks did not appreciate as they would in the past.
Financial situation of Indian railways is too not that well itused be in the regime of Lalu Prasad Yadav.
Despite rising coal, diesel and electricity costs coupled with higher salary outgo (especially after 6th pay commission recommendations) railways has not hiked the passenger fairs in past several years.
In India 80 % of transportation takes place via road transport and remaining 20 % is through railway and unless road transport tariffs raise railways shall find it difficult to raise the tariffs, as depicted by Hind rectifier’s CEO.
Only hope lies with the companies which make anti-collision devices as rail mishaps increased during the Mamata Benarji’s tenure.
Companies like Kernex auto and Siemes make anti-collision devices and Kernex auto gave 5 % returns in past 3 days.
Following is the list of returns given by rail stocks in past 3 days.


Post a Comment

Related Posts Plugin for WordPress, Blogger...