Rail stocks look good for investments: VK Sharma

Excerpts from Your Stocks on CNBC-TV18 Watch the full show » Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Rail stocks are looking good for investments, says VK Sharma of Anagram Stock Broking.

Sharma told CNBC-TV18, "The sector is good from an investment perspective because the freight corridor is going to happen, trains are going to run at a massive speed, the metrolization of the trains is going to happen, we are going to have metros at many places. So whether you are a manufacturer of metro coaches like BEML or you make the wagons like Titagarh , there is room for everyone. Even for signaling systems, you have Siemens and all those people. So if you are looking at from a long-term investment perspective, this sector is a great sector to be in."

He further added, "If you think that there would be something in this current budget and therefore you should buy these stocks, my own sense is this is a dangerous game and needs to be played with very tight stop losses. I personally have seen that whenever the news comes, it is best to sell these stocks rather than buy because in the current railway management, the pace of execution is pretty slow. So my own sense is one should stay away from these stocks and should use the rally to lighten commitments; long-term it is a good sector to be in."

Disclosure: Holdings only in Kalindee.