Railway stocks tank 13% as early election trends diverge from exit polls
Railway firm stocks plummeted up to 13%, as election trends diverged from exit polls. Rail Vikas Nigam dropped nearly 13%, with Ircon International down by 12%. Other firms like RailTel, IRFC, Texmaco, and IRCTC fell 6-10%. Titagarh Rail Systems and Jupiter Wagons also saw declines. Early data showed the BJP-led NDA leading in 289 seats, contrary to exit polls projecting over 370 seats.
Shares of railway firms tumbled by up to 13% in early trade on Tuesday, June 4, as early did not align with .Shares of tumbled nearly 13% to Rs 351.7, while saw a 12% decline. , , Texmaco Rail & Engineering, and IRCTC also fell between 6-10%. Meanwhile, Titagarh Rail Systems and Jupiter Wagons fell by 6% and 10%, respectively.
As per early data till 11:10 am, the was ahead in 289 seats out of 543 seats, while the INDIA alliance was leading in 233 seats, with others leading in 21 seats. This contrasts with earlier exit poll surveys, which, after the 7th phase of elections on Saturday, indicated a likely BJP victory with the NDA securing over 370 seats.
Attributing today's steep fall to the current trends, V K Vijayakumar, Chief Investment Strategist at , said that if the BJP doesn’t secure a majority on its own, there will be disappointment, which is being reflected in the market.
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Meanwhile, as of 11:01 am, the was trading 3,307 points, or 4.3%, lower at 73,156. The was down 1,061 points, or 4.56%, trading at 22,202. The volatility gauge also spiked 33.8% to 28 levels.
The of all listed companies on the BSE declined by Rs 21.5 lakh crore to Rs 404.42 lakh crore.
In Tuesday's trade, the was the worst hit, crashing over 11% with all stocks in the index seeing double-digit losses. Other PSU stocks like PFC, REC, and BEL fell up to 20%.
(Disclaimer: The views expressed by experts are their own and do not necessarily reflect those of The Economic Times)
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Source: Stocks-Markets-Economic Times
