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Business News/ Markets / Stock Markets/ HBL Power share price surges 10%, Kernex Microsystems hits 5% upper circuit as Govt plans to expedite Kavach adoption

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HBL Power share price surges 10%, Kernex Microsystems hits 5% upper circuit as Govt plans to expedite Kavach adoption

1 min read 05 Jun 2023, 10:07 AM IST Join us

Livemint ,Edited By Nishant Kumar

Shares of HBL Power Systems and Kernex Microsystems have surged on hopes that the Indian government will prioritise contracts to deploy the Kavach system after the recent train accident in Odisha.

Shares of HBL Power Systems have gained over 13 per cent in just three sessions of June while those of Kernex Microsystems are up around 16 per cent in the same period.

The share price of HBL Power Systems surged over 10 per cent to hit their fresh 52-week high of ₹123.70 while those of Kernex Microsystems opened at their 5 per cent upper circuit of ₹297.55 in early trade on BSE on Monday (June 5). Market participants believe these two stocks have been gaining traction on hopes that after the Odisha accident, the government will prioritise contracts to deploy the Kavach system which will be a boost for these two companies as they are among the major companies that provide transport-related equipment and services.

Both stocks have been gaining for the last few days; shares of HBL Power Systems have gained over 13 per cent in just three sessions of June while those of Kernex Microsystems are up around 16 per cent in the same period.

As Mint reports, 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 Friday's (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.

Earlier on March 23, 2022, the Ministry of Railways announced a significant step towards enhancing the safety of train operations in India with the development of the indigenous Automatic Train Protection (ATP) System called Kavach. Developed in collaboration with three Indian vendors by the Research Designs and Standards Organisation (RDSO), Kavach has been adopted as the National ATP System for Indian Railways.

Kavach has been designed to assist locomotive pilots in avoiding Signal Passing At Danger (SPAD) and overspeeding while also providing support for train operations during adverse weather conditions such as dense fog. By automatically applying brakes when necessary, the system ensures better control over train speed and prevents potential accidents.

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