Railway stocks plummet 20% as Lok Sabha results show narrower victory for Modi-led NDA – Times of India
Railway stocks today: On Tuesday, June 4, railway stocks experienced significant declines, with some companies seeing their shares plummet by up to 20%. Titagarh Rail Systems and RailTel Corporation were among the hardest hit, with their stocks tumbling nearly 20%.
Other companies such as Ircon International, IRCTC, RITES, Rail Vikas Nigam (RVNL), and Texmaco Rail & Engineering also witnessed substantial losses, with declines exceeding 18%.IRFC and Jupiter Wagons were not spared either, as their shares fell by approximately 16%.
The sharp drop in railway stocks can be attributed to the Lok Sabha election result trends, which deviated from the predictions made by exit polls. Data is indicating that the BJP-led NDA is leading in 297 out of 543 seats, while the INDIA alliance was ahead in 229 seats, with others leading in 17 seats.
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These numbers stand in contrast to the exit poll surveys conducted after the 7th phase of elections on Saturday, which had suggested a likely BJP victory, with the NDA expected to secure over 370 seats.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the steep fall, stating, “If the BJP doesn’t secure a majority on its own, there will be disappointment, which is being reflected in the market.”
The broader market also experienced a significant downturn, with the BSE Sensex and Nifty50 plunging and India VIX skyrocketing by 44%.
Other companies such as Ircon International, IRCTC, RITES, Rail Vikas Nigam (RVNL), and Texmaco Rail & Engineering also witnessed substantial losses, with declines exceeding 18%.IRFC and Jupiter Wagons were not spared either, as their shares fell by approximately 16%.
The sharp drop in railway stocks can be attributed to the Lok Sabha election result trends, which deviated from the predictions made by exit polls. Data is indicating that the BJP-led NDA is leading in 297 out of 543 seats, while the INDIA alliance was ahead in 229 seats, with others leading in 17 seats.
Also Check | Stock Market Crash Live Updates
These numbers stand in contrast to the exit poll surveys conducted after the 7th phase of elections on Saturday, which had suggested a likely BJP victory, with the NDA expected to secure over 370 seats.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the steep fall, stating, “If the BJP doesn’t secure a majority on its own, there will be disappointment, which is being reflected in the market.”
The broader market also experienced a significant downturn, with the BSE Sensex and Nifty50 plunging and India VIX skyrocketing by 44%.
