Railway, defence stocks fall up to 15% amid profit taking; Bharat Dynamics, BEL and Cochin Shipyard hit lower circuit

On the D-day (general election outcome day)  in line with the crack in the headline indices, railway, defence stocks took a sharp knock amid profit booking. The reversal of the previous day’s gains were largely triggered as the initial poll outcome showed divergence from the exit poll figures which predicted a clear victory for the BJP-led NDA.

Among the railway stocks, IRCON International traded down by over 6 per cent, while others from the basket, including RVNL, IRCTC, Titagarh and Texamaco Rail and Engineering also traded with a cut of up to 6 per cent at the last count.

Meanwhile, defence stocks hogged the limelight amid the centre’s heavy thrust on Atmanirbhar Bharat and compounded investors’ wealth significantly saw sharp sell-off in Tuesday’s trade.

Shares of Hindustan Aeronautics at day’s low cracked up to 10 per cent, while Bharat Dynamics, Bharat Electronics, Mazagaon Dock Shipbuilders, and Cochin Shipyard traded with cut of 15 per cent. At the last count, Bharat Electronics traded hit a 15 per cent lower circuit, while Mazagon Dock was down by over 15 per cent,  Cochin Shipyard hit 10 per cent lower circuit and Bharat Dynamics also was at 10 per cent lower circuit. The government is particularly focused on the defense industry and the railroads.  The focus on these two industries will be reinforced if the current administration is in office, suggesting further growth, said Trivesh D, COO at Tradejini.

He added that this expectation drives optimism around sustained capital expenditure and continued policy support for PSUs.