Shares of 12 companies whose fortunes are linked to orders from Indian Railways rose by 4.70% to 20% at 13:22 IST on BSE after Narendra Modi-led Bharatiya Janata Party swept the country's Lok Sabha elections on Friday, 16 May 2014.
Texmaco Infrastructure & Holdings (up 20%), Kernex Microsystems (India) (up 19.09%), Kalindee Rail Nirman (Engineers) (up 16.73%), BEML (up 16.45%), Hind Rectifiers (up 13.52%), Bhel (up 5.69%), Container Corporation of India (up 5.35%), Transformers & Rectifiers (India) (up 4.99%), Titagarh Wagons (up 4.99%), Nelco (up 4.91%), Stone India (up 4.81%) and Zicom Electronic Security Systems (up 4.70%), edged higher.
The S&P BSE Sensex was up 222.47 points, or 0.92% at 24,344.21.
Rail stocks are in demand as Narendra Modi has been stressing on improving Indian railways. In his campaign speeches, he also highlighted about modernising the railway system, just like in Japan. Modi repeatedly referred to bullet trains during his campaign speeches and high-speed trains found a prominent space in BJP's election manifesto.
According to reports, Mumbai-Ahmedabad and New Delhi-Patna (via Varanasi) corridors are on top of the list and the national transporter is planning to accelerate these projects.
In the 16th Lok Sabha the BJP and its allies enjoy a strong majority of 335 in the 543-member House. With the opposition completely decimated, the Narendra Modi-led government is unlikely to face any difficulty in pushing through reforms.
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