Do not accumulate rail stocks now: JV Capital Services
I had said prior to this pre-budget talk that most of these stocks would tend to react negatively post the budget.
By ET Bureau |
Ashit Suri, Fundamental Research Analyst, JV Capital Services
Most of the Railway stocks are not moving, they are actually in the red. What is your take on that?
I had said prior to this pre-budget talk that most of these stocks would tend to react negatively post the budget. Most of these stocks did run up pre-budget and there was a lot of momentum play. We would advice to wait for the dust to settle for the moment because its not a trading call anymore.
There has been a lot of positive announcements in infrastructure space for railways, like dedicated freight corridors, laying of rail tracks in a big way, there is a talk of wagon procurement of 25,000 pieces which is again a huge order for companies like Texmaco, BEML, Titagarh Wagons.
The infrastructure expansion is going to benefit companies like Container Corporation in a big way. When you are talking of anti-coalition devices, it is going to benefit but these are long term stories and one could look at the valuations which is very important at this point of time when the market lacks conviction.
My advice would be to accumulate stocks like Titagarh, Texmaco on corrections and not to trade at this point of time because its very risky looking at the overall market.
Most of the Railway stocks are not moving, they are actually in the red. What is your take on that?
I had said prior to this pre-budget talk that most of these stocks would tend to react negatively post the budget. Most of these stocks did run up pre-budget and there was a lot of momentum play. We would advice to wait for the dust to settle for the moment because its not a trading call anymore.
There has been a lot of positive announcements in infrastructure space for railways, like dedicated freight corridors, laying of rail tracks in a big way, there is a talk of wagon procurement of 25,000 pieces which is again a huge order for companies like Texmaco, BEML, Titagarh Wagons.
The infrastructure expansion is going to benefit companies like Container Corporation in a big way. When you are talking of anti-coalition devices, it is going to benefit but these are long term stories and one could look at the valuations which is very important at this point of time when the market lacks conviction.
My advice would be to accumulate stocks like Titagarh, Texmaco on corrections and not to trade at this point of time because its very risky looking at the overall market.
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