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With Prabhu in driver’s seat, Rail stocks chug by up to 9%

Shares of companies related to the railways sector on Monday closed up to 9 per cent higher a day after Prime Minister Narendra Modi expanded his Union Cabinet and appointed Suresh Prabhu as the new Railway Minister. Texmaco Rail & Engineering surged 8.98 per cent, while Kalindee Rail Nirman (Engineers) climbed 8.10 per cent and Titagarh Wagons rose by 3.62 per cent on the Bombay Stock Exchnage (BSE). Kernex Microsystems India jumped 4.96 per cent, Stone India was up 2.58 per cent. Market experts said these scrips rose on hopes of reforms and investment in the rail sector.

Suresh Prabhu was on Sunday inducted into the Union Cabinet and given Railway portfolio as Prime Minister Narendra Modi undertook an expansion of his council of ministers and reshuffled portfolios while bringing in 21 new faces. In the broader market, the BSE benchmark Sensex ended flat, up 6.10 points at 27,874.73.

The 50-share NSE Nifty after hitting a new peak of 8,383.05 in early trade, also succumbed to profit-booking. It gave up most of initial gains to touch a low of 8,304.45 before ending at 8,344.25, showing a moderate rise of 7.25 points. The gauge had previous intra-day record high of 8,365.55, touched on 5 November. Market players said sentiment was upbeat on hopes that the government will accelerate economic reforms process after expansion of the Union Cabinet, lifting the Sensex and Nifty to new highs.

Some investors sitting on gains, however, became cautious and booked profits in recent outperformers, dragging down the key indices from record highs, they added.

PTI

PTI

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