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7 outperforming railways stocks across different segments

Railways stocks: Stay bullish, just hedge a bit to avoid mistake of selling in haste: 7 outperforming railways stocks across different segments

Synopsis

Even the best of the rational brain can make wrong decisions when there is too much noise which gets created due to a narrative. Now for the last few days a narrative has been created that due to polls, FPI are selling. These kinds of narratives tend to hit the sector and stocks which are sitting with big gains and are dependent on government policy push. Railways was among the last sectors to get re-rated due to the policy focus. Whether it was companies which are financing the expansion of railways or private sector companies which are making coaches, all of them have done extremely well. Given the fact the railways is likely to be the focus area, the long term story remains intact. Only thing is that one might end up selling the long term winner early because of the narrative. Rather than getting jittery, it would be better to create a hedge and stay with the stocks where there has been a big change in the fundamental ways things operate and the sector has a long runway.

When one stock is sitting with a gain of more than 300 %, another is sitting with 200 % in the election season, there are bound to be times when one or the other narrative may make one question about whether one should sell these stocks and protect profit. Especially when it comes to sectors like railways which have seen a strong re-rating and siting with big gains and already there has been skepticism about stock price moving ahead of time. Now
ETMarkets.com

14 mins read, Last Updated: May 18, 2024, 03:32:00 PM IST

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