During the midday trade, the benchmark BSE Sensex was up 0.5% at 81,674, while the broader Nifty 50 advanced 0.44% to 24,987, led by continued optimism around proposed cuts in the domestic goods and services tax.
Meanwhile, Kernex Microsystems (India), the manufacturer of Safety Systems and Software services for Railways, announced that it has received an LOA for a KAVACH order. Reacting to this, the stock price hit 5% upper circuit. The order details are as follows:
Kernex Microsystems (India) Ltd. (KMIL) announced that the Kernex-KEC Consortium has received a Letter of Acceptance (LOA) from West Central Railway, Bhopal, for the implementation of India’s indigenous Automatic Train Protection (ATP) system, KAVACH.
The contract, valued at ₹151.41 crore (including 18% GST), covers the deployment of KAVACH on a UHF backbone with Optical Fibre Cable (OFC) and route diversity. The scope of work spans multiple railway sections, including Itarsi (excluding) – Khandwa (excluding), Bina (excluding) – Ruthiyai, and other associated stretches under the Bhopal Division of West Central Railway.
The project is scheduled to be completed within 600 days from the date of the LOA.
KMIL highlighted that this order strengthens its growing portfolio of KAVACH projects, with cumulative orders – including those executed through consortiums and partners – now reaching ₹3,136.53 crore (inclusive of GST) from April 1, 2024, to date.
KAVACH, developed indigenously, is a cutting-edge ATP system designed to enhance rail safety and operational efficiency across the Indian Railways network.
On Tuesday, Kernex Microsystems share price jumped by 5% and locked in the upper circuit as the company received a KAVACH order. The stock price has bounced from the 200-day EMA.
Disclaimer: The article is for informational purposes only and not investment advice.
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