Synopsis
Does being contrarian always help? Let’s answer this question by going back to early 2022. Was anyone recommending railways stocks then? The answer is no. Come mid-2023, buy recommendations started coming, and by the start of 2024 railway stocks had all the attention. After the 2024 elections, because the government did not announce the kind of numbers that the street expected, there was a de-rating of most PSU stocks, including railways. Things got worse because the market as a whole came under pressure. Today, a majority of analysts have sell recommendations on railways stocks. Will they be proven wrong?
When the stock market is in recovery mode and there are many sectors and stocks to buy, why focus on railways-related stocks? Because, being contrarian comes with its own reward and risks. Now, risk can be managed in different ways. But rewards only come if you take that risk. Railways-related stocks, which did very well between January and July 2024, have since been underperforming. This begs a few questions. One: Has the underperformance
- FONT SIZE
AbcSmall
AbcMedium
AbcLarge
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
