3 stocks defy volatility ahead of Lok Sabha poll verdict
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Three defence, rail stocks defy volatility in stock market
By S Jha
New Delhi, May 19: Sensex has gained over 200 points in a quick span of five days. Nifty also has posted gains of an almost 550 points in just five days. Bulls held sway in the street in the last week.
The sharp subsiding of the volatility had accounted for the fast and furious gains in the indices. The fifth phase of polling will be held tomorrow, on May 20.
The market participants don’t rule out the return of the volatility in the equity markets. Higher volatility may unleash an adverse impact on the stock market.
But there are a few stocks which are defying volatility. Backed by swelling order books and improving financials in the quarterly results, they are soaring high in the street.
Mazagon Dock Shipyard
India’s foremost nuclear submarine manufacturer has finally broken out of a narrow trading range, The market participants claim that Mazagon Dock Shipyard was trading in the range of ₹2100-2300 for the last few months.
The last five days has been most benign for Mazagon Dock Shipyard. It has sharply spiked by 31 per cent in the last five days.
It is worthwhile to note that Mazagon Dock Shipyard is leading the pack also consisting of Cochin Shipyard and Garden Rich Shipyard with fast gains on the street.
Data Patterns
The Chennai-based defence electronics play is in the midst of a stellar run on the bourses. Helped by good quarterly result, Data Patterns also as per market participants has broken out from the tight trading range.
Data Patterns had been trading in the range of ₹2800-3000 for the past several weeks. But now the share price has gone past ₹3300 levels. It has also gained over 18 per cent in just five days.
The gains in Data Patterns is in sync with fast gains also seen in Hindustan Aeronautics Limited (HAL). Both the scrips on the bourses have brought cheers to the investors.
IRCON
The PSU rail company IRCON is in the midst of a sharp reversal from a long-term consolidation after selloff after the interim rail budget. The share price of IRCON has gained over 21 per cent in the last five days.
The railways construction company is rising amid reports of India and the United Arab Emirates holding talks on the proposed India-Middle East-Europe Economic Corridor.
There is a sharp rally seen in the railway counters. The likes of Titagarh Wagons, Jupiter Wagons, IRFC, Rail Vikas Nigam, and others are witnessing fresh buying interests.
(Disclaimer: This article makes no recommendations for buy or sell of shares of any company)
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