Analysts Attribute Decline in Railway Stocks to Execution Concerns and Anticipation of Order Inflow Slowdown Amidst Lok Sabha Elections.
Railway Stocks Witness Correction of Up to 30% from Recent Highs, Analysts Attribute Decline to Execution Concerns and Pre-Election Order Inflow Slowdown.
The railways segment finds itself under pressure attributed to various factors. Experts suggest that one reason could be profit booking, considering the recent rally in railway stocks that persisted until last week. Additionally, the not-so-stellar financial results of railway companies contribute to the downturn. Sunny Agrawal, Head of Fundamental Research at SBI Securities, notes, ‘The street was expecting a bumper set of results from the railway companies, and that has not been the case.’ This combination of factors has led to a challenging scenario for railway stocks in the market.