Companies in the railways-related business are on a roll on the bourses ahead of the Railway Budget on February 24. Analysts say this is a yearly phenomenon. These stocks rally ahead of the Railway Budget on expectations of higher spending by the railways, but lose most of the gains soon after the budget: a good example of ‘buy on expectations, sell on news'.
An analysis of the stock price movement of five companies — Kalindi Rail Nirman, Kernex Micro, Stone India, Texmaco and Titagarh Wagons — shows that four of these stocks have gained since the beginning of the month, with Stone India up nearly 11% to Rs 75. Kernex is the lone laggard in the group, down nearly 5% during the period, to Rs 177.
Apart from the stock price appreciation, total volumes on these counters have also gone up substantially, especially this week. For example, in Stone India, the Kolkata-based engineering company that mainly concentrates on works for the railways, average daily traded volumes on the BSE jumped nearly 15 times in the last four sessions to over 7 lakh shares from about 50,400 shares earlier. Daily volumes have risen manifold on most of the other counters as well.
Source : http://timesofindia.indiatimes.com/biz/india-business/Stocks-of-cos-in-rly-business-on-a-roll/articleshow/5585696.cms
An analysis of the stock price movement of five companies — Kalindi Rail Nirman, Kernex Micro, Stone India, Texmaco and Titagarh Wagons — shows that four of these stocks have gained since the beginning of the month, with Stone India up nearly 11% to Rs 75. Kernex is the lone laggard in the group, down nearly 5% during the period, to Rs 177.
Apart from the stock price appreciation, total volumes on these counters have also gone up substantially, especially this week. For example, in Stone India, the Kolkata-based engineering company that mainly concentrates on works for the railways, average daily traded volumes on the BSE jumped nearly 15 times in the last four sessions to over 7 lakh shares from about 50,400 shares earlier. Daily volumes have risen manifold on most of the other counters as well.
Source : http://timesofindia.indiatimes.com/biz/india-business/Stocks-of-cos-in-rly-business-on-a-roll/articleshow/5585696.cms
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