Rail stocks salute Aswini Vaishnaw taking charge of Railways
Sensex erases gains ahead of US Fed meeting while rail & housing stocks gain
By S Jha
New Delhi, June 11: With eyes on the meeting of the US Federal Reserve, the stock market stayed on Tuesday in choppy waters. Nifty erased all gains of the day to close flat. Bank Nifty ended in red. Sensex also erased all gains of the day.
The US Federal Reserve meeting is keeping the investors on the edge. The market participants are dreading prospects of the hawkish commentary coming out of the monthly meeting.
The inflation and the job data have been hot in the US. Hopes of early rate cuts are evaporating. Against three rate cuts this year, investors are now hoping of at least one rate cut in the current fiscal.
Also Read: Modi reveals signs of political adjustment with status quo
While the indices remained choppy, select stocks outperformed the broader market. Union Minister Ashwini Vaishnaw took charge of the Ministry of Railways.
The rail stocks cheered Vaishnaw retaining the Ministry of Railways. The market was looking at the portfolio distributions of the council of ministers with anticipation and cues.
Rail Tel led the bull’s charge on the street. The lone telecom PSU of the railways gained over nine per cent on Tuesday.
The Kolkata-based Jupiter Wagons extended gains on Tuesday. The wagons’ manufacturer had tanked to the levels of ₹450 on the day of the Lok Sabha poll verdict. The scrip on Tuesday crossed the levels of ₹650.
Also Read: Muizzu attends Modi oath, Maldives orders reviews of India pacts
The IRCTC was also among the gainers on Tuesday. IRCON and Rail Vikas Nigam made strong gains. The rail stocks positively responded to Vaishnaw taking charge of the Ministry of Railways.
It may be noted that several of the Rail stocks have been trending in anticipation that the Centre will continue to back the expansion of the Vande Bharat fleet of trains.
The housing scrips also gained firmly in response to the Cabinet decision to fund additional three crore rural houses. Prime Minister Narendra Modi presided over the first Cabinet meeting yesterday in which the proposal to finance construct three crore houses was approved.
Watch: Who will be next #BJP president after #JPNadda joined #ModiCabinet ?
The housing finance companies were in demand. Digital-based Home First gained over 10 per cent. Awas Financiers also gained firmly on Tuesday. Both the scrips are recently listed housing finance companies with niche markets.
Shares of sugar companies were also in demand on Tuesday. Select infrastructure companies also made strong gains on the street.
Join WhatsApp channel of The Raisina Hills
About The Author
