Shares of Kernex Microsystems continued witnessing strong traction as they were locked in their 5 per cent upper circuit of ₹328 in morning trade on BSE on Wednesday (June 7), looking set to extend their winning run into the sixth consecutive session. The stock has clocked a strong gain of about 29 per cent in the last six sessions.
Similarly, shares of HBL Power Systems rose nearly 6 per cent to hit their fresh 52-week high of ₹143.70 on Wednesday. They are also up for the sixth consecutive session, rising almost 37 per cent in that period.
A major chunk of this gain for both stocks has come after the recent reports which indicated the government is planning to expedite the adoption of the Kavach system in the wake of the Odisha accident. These two firms are among the major companies that provide transport-related equipment and services.
As Mint reported, quoting a railway official, New Delhi Indian Railways would fast-track plans to implement Kavach, an advanced protection technology, alongside block signalling and centralised traffic control systems on busy routes. This comes in the wake of the June 2 gruesome train accident in Balasore district, Odisha, involving the Bengaluru-Howrah Superfast Express, the Shalimar-Chennai Central Coromandel Express, and a goods train that left over 238 dead and 650 injured.
Kavach was introduced as part of the Atmanirbhar Bharat initiative in Budget 2022 and works by automatically applying the brakes if the loco pilot fails to do so, which helps in preventing accidents. The system has been designed to assist locomotive pilots in avoiding Signal Passing At Danger (SPAD) and overspeeding.
The government had announced their plan to deploy Kavach over 34,368 km of track, covering high-density and highly utilised routes, targeting the completion of this plan by 2026.
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Updated: 07 Jun 2023, 10:06 AM IST