Rail stocks plunge up to 20% for second day in a row

PTI Posted online: Wednesday, Jul 09, 2014 at 0000 hrs
Mumbai : Share prices of companies that cater to the railway sector continued their southward journey for the second straight session today, falling as much as 20 per cent.

Texmaco Rail & Engineering tumbled 19.99 per cent, while BEML tanked 5 per cent on the BSE.

Shares of Titagarh Wagons went down by 5 per cent, while Kalindee Rail Nirman fell by 4.98 per cent, Kernex Microsystems (4.98 per cent) and Hind Rectifiers (4.92 per cent).

The stocks had slipped up to 20 per cent yesterday as well, as the Railway Budget apparently fell short of market expectations.

Railway Minister Sadananda Gowda had yesterday tabled his maiden Railway Budget in Lok Sabha where he proposed to attract private domestic and FDI in infrastructure projects and pursuing private-public partnership to boost the finances of the cash-strapped railways.

"...the budget was about operationalising legacy projects which were languishing as no focus was there on execution of these projects. Absence of big bang announcement has led to a sharp correction in equity markets," said Ritesh Jain, Chief Investment Officer, Tata Asset Management Ltd.

Meanwhile, the broader market also faced selling pressure with the BSE benchmark Sensex falling by 137.30 points to settle at 25,444.81.