How Will Rail Stocks React On Monday Following The Odisha Train Accident?

There might be very little impact on rail stocks when trading resumes on Monday, following the Odisha Train Accident. Over 200 people died and around 900 were injured as the Coromandel, Bengaluru-Howrah Express train derailed and hit a goods train at Bahanaga station in Balasore district of Odisha.

A small sentimental impact on rail stocks is a possibility, but, beyond that stocks from the sector are likely to trade flat on Monday.

The stock of Titagarh Wagon, which makes freight wagons, passenger coaches, metro train coaches, train electricals is unlikely to be impacted either positively or negatively due to the accident. In fact, the fundamentals of Container Corporation or any other rail oriented stock is unlikely to change as well following the accident. At the moment there is no business disruption on any of the major companies in the sector, which is a key to stock price movement. In fact, some companies may now get more orders following the rail accident, which is likely to be very small in any case.

Players like Rail Vikas Nigam and ICRTC are unlikely to see a change in fundamentals or orders following the accident.

Meanwhile, Titagarh Wagon saw a massive jump of 7% in share price on Friday, even before the accident took place. Rail Vikas Nigam was last seen trading at Rs 117.90, when markets closed on Friday, while ICRTC last quoted at Rs 645.50.