Reflecting the general lacklustre mood of the market, the Sensex closed at 3,281.29 points, registering a net loss of 6.24 points. However, the newly revamped BSE-100 index closed slightly higher at 1,454.59 points -- a net gain of 0.42 points. Mirroring the temporary gains made by stocks like Tisco, Reliance and select pharma representatives, the Sensextraded in the band of 3,269.39 points and 3,311.84 points. According to brokers, the downside of the index has been restricted and this is a positive signal.Similarly, the S&P CNX Nifty index closed at 954.30 points, registering a net decline of 3.35 points. The Skindia GDR index also witnessed lacklustre trades during mid-session. The index was traded at 583.12 points. "Although there was no hype about the railway budget, if the fiscal budget falls in line with today's announcements, the sentiments on the bourses is bound to improve," said BSE broker, Neel Dalal.

Stockmarkets reacted lukewarm to the Railway Budget as it was preoccupied with concerns about the stability of the government. Unlike previous years, the Railway Budget this year caused hardly a ripple in the market, except for the short duration flare up witnessed in steel stocks. Even that was short-lived as they came down towards the close following the general market trend. Tisco closed slightly higher at 124.60, after rising to Rs 127immediately after the Rail Budget. Sail closed lower at Rs 7.45 as against its previous close of Rs 7.65. Interestingly, the net long positions on the BSE have fallen by Rs 60 crore to Rs 1,203 crore. The gross long positions have fallen by Rs 67 crore to Rs 1,499 crore, while the gross short positions have now been pegged at Rs 296 crore after registering a fall of Rs 7 crore. According to brokers, the substantial fall in the long positions of Tisco, Zee, Reliance, HPCL and IPCL have contributed to the net fall in the long positions. Tisco's positions have fallen dramatically by 6.25 lakh shares valued at Rs 8 crore, while that of Zee Telefilms has fallen by 1.66 lakh shares valued little over Rs 10 crore.

"Since the freight hike is reasonably normal and across the board it should not adversely affect any particular sector," said the director of Kaji & Maulik Securities, Maulik Sharedalal. Brokers explained that as the freight rate hikes were within the limits of the expected jumps in the inflation rate,the market failed to react adversely.

However, in the absence of any clear indication of whether Budget made any provisions for significant discounts on freight for short hauls of cargo, marketmen refused to comment on the impact of the Railway Budget on specific sectors. "If the budget has provided significant discount on freight for short hauls of cargo then it could put a pressure on road freight rates and, thereby, impact truck manufactures," said a broker. Analysts also believe that if this happens it could have an adverse impact on the performance of Telco and Ashok Leyland. However, it could not be confirmed from the companies.

The Thursday phenomenon was once again witnessed in Reliance. Rumours of a leading broking outfit warehousing the shares led to a fresh spree of purchases at the counter. The stock registered an intra-day's high of Rs 143 before closing at Rs 139. According to market sources, a great deal of liquidation of long positions was registered at the counter during the last phase ofthe session. The stock clocked a volume of over 1.5 crore shares on both the bourses.