New Delhi: In response to Prime Minister Narendra Modi-led National Democratic Alliance (NDA) securing only a narrow victory in the recently concluded elections, railway shares have experienced a significant downturn, plummeting by up to 33 percent over the past two days.
The outcome of the polls, marked by a strong showing by the opposition INDIA alliance, has raised apprehensions among investors regarding the continuity of policies under the new government.
Leading the decline, shares of Titagarh Rail Systems saw a steep drop of nearly 33 percent, while Ircon International witnessed a decline of over 26 percent. RailTel Corporation and IRCTC also suffered substantial losses of over 19 percent during this period. Additionally, RITES, IRFC, RVNL, Texmaco Rail Systems, and Jupiter Wagons recorded declines ranging between 18 percent and 23 percent. Wednesday's trade continued the downward trend, with railway stocks falling by up to 17 percent.
The impact of the election outcome extended beyond railway stocks, with other PSU stocks such as Cochin Shipyard and Bharat Dynamics also witnessing a 10 percent decline, contributing to a 4 percent fall in the BSE PSU index. Additionally, stocks like NBCC, HUDCO, Indian Bank, and REC experienced declines of more than 5 percent. Shares of NTPC, CONCOR, Hindustan Copper, GIC, Central Bank of India, NMDC, Powergrid, PFC, BEL, PNB, UCO Bank, Union Bank of India, HAL, BHEL, and SJVN saw falls of more than 3 percent.
Notably, the Indian stock market registered record highs last week after exit polls predicted a landslide victory for the Modi-led alliance.
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