Rail stocks pick up steam on Narendra Modi's reform agenda

Written by fe Bureau | Mumbai | Updated: Apr 23 2014, 17:22pm hrs
Narendra ModiOn Monday, railway stocks had rallied nearly 15% after Modi in an interview on Friday. Reuters
Railway stocks have gained 6.5% to 35% since Monday after BJPs prime ministerial candidate Narendra Modi indicated major reforms if voted to power.

On Tuesday, railway stocks rallied for the second consecutive day after Modi, at his Mumbai rally on Monday, said there should be special universities to create skilled manpower for the sector.

Titagarh Wagons (16.9%), Kalindee Rail Nirman (4.31%), Kernex Microsystems (4.56%), Texmaco Rail Engineering (1.13%) and Hind Rectifiers (2.64%) were major gainers on BSE.

On Monday, railway stocks had rallied nearly 15% after Modi in an interview on Friday said the sector needed an overhaul in terms of technology.

We have separated the railways from the federal structure and the states. Tweaking fares and adding coaches won't help. It needs holistic restructuring and technology upgrade, he said.

After his comments, Titagarh Wagons stocks rose 15.79%, followed by Kalindee Rail Nirman (11.28%), Kernex Microsystems (10.34%), Texmaco Rail Engineering (5.39%) and Hind Rectifiers (6.3%).