The Mamata Effect

The fiasco over the rail budget has wrecked the market caps of Rail wagon companies.

Consider the performance of the rail stocks post the rail budget till now:

CIMMCO (down 22%)

Kalindee (down 59%)

Texrail (down 22%)

TWL (down 30%)

None of these stocks are in the F&O segment else they would have been butchered even further.

Considering the poor finances of Indian railways, the under performance should continue till the next Rail budget at least.

A sector to avoid.