Railway-related stocks extend declines on budgeted outlay concerns

Jul 08 2014, 15:47 IST
Comments 0
Ahead of Rail Budget presentation, India's railway-related stocks fall on profit-taking. (Reuters) Ahead of Rail Budget presentation, India's railway-related stocks fall on profit-taking. (Reuters)
SummaryShares in the sector have surged on hopes of reforms including opening of the sector to foreign investments.

Railway-related stocks extend declines on disappointment pertaining to the budgeted outlay for 2014/15.

Budgeted outlay for FY15 at 643.05 billion rupees, compared to 593.54 bln rupees for FY14, is just an 8.2 percent yearly growth, investors say.

Texmaco Rail & Engineering Ltd slumps 20 percent, while Kalindee Rail Nirman Engineers and BEML Ltd fall 5 percent each.

Titagarh Wagons Ltd, which has risen 183 percent in 2014 against the NSE index's gain of 23.65 percent, falls 5 percent.

Earlier, stocks of companies related to railways sector fell as much as 8 per cent in morning trade today due to profit-booking ahead of the railway budget to be presented shortly.

Shares of Texmaco Rail & Engineering tanked 7.72 per cent, while Titagarh Wagons plunged 4.99 per cent on the BSE Sensex.

Similarly, Kernex Microsystems fell by 4.93 per cent.

Rail stocks have surged in the past few days on hopes of some measures from this railway budget including FDI in railways, introduction of bullet trains, robust maintenance system for railway tracks, increasing the number of trains and raising the speed of trains.

Also read:

Live Rail Budget 2014

Railways, prime mover

Indian Railways: Losing track of the whole

A win-win budget, sans populism

In the stock market, the benchmark BSE Sensex was trading at 26,055.28, down 44.80 points at 1130 hours.

Ads by Google

More from Markets

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...