Rail Stocks Chug Along In Falling Stock Market

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Stock Market Today Falls Amid Selloff In IT & Auto Stocks

By S Jha

New Delhi, October 16: Nifty on Wednesday ended the day with loss of 86 points. Bank Nifty shed over 100 points. Sensex was also poorer with over 300 points.

Key indices went on retracement on Wednesday. Trade was sideways with negative bias in the stock market today.

Nifty once again lost the key pivot of 25000. Nifty closed the day at 24971. The bulls are worried that the 50-share index once more lost the pivot of 25,000.

Bank Nifty briefly went past 52,000 level. The bulls were hoping that the banking index will break out after staying over the key level of 51820.

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But Bank Nifty also ended the day at 51801. The weakness in the banking index was despite firmness in heavyweight HDFC bank. This alarmed the bulls.

The HDFC pack was trending during the day. HDFC bank shares for a fair span of time traded above ₹1700 level. HDFC Life was also firm during the day. HDFC AMC was also trading with gains.

The IT and Auto indices majorly dragged Nifty on Wednesday. Major IT and auto stocks were trading with deep cuts. Both the sectors had recently been helping indices to pull back from losses.

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Yet, the bulls tried to stage a comeback. The 50-share index in the afternoon erased losses of over 100 points in a span of an hour. But last 45-minute of the trades went into the court of bears.

But a lot of action is taking place in small and midcap stocks. The rail stocks in particular showed life during the day.

The bulls’ charge was led by Rail Tel. Bagging a contract from the Maharashtra Housing Department, shares of Rail Tel gained over six per cent. The Maharatna rail PSU had been consolidating for over the past few weeks.

K&R Rail Engineering in the last three weeks had corrected by over 35 per cent. But this small cap rail stock was locked in a 20 per cent upper circuit in early hours of the trade. The scrip ended the day with gains of over 15 per cent.

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Kernex Microsystem, a major player in the Kawach installation in the railways, was locked in a five per cent upper circuit. This scrip is steadily staying above the ₹750 level after almost doubling in a quick time span.

Texmaco Rail & Engineering also extended gains on Wednesday. The scrip closed the day with gains of over two per cent.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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