Rail stocks slide 4% ahead of Rail Budget

Latest News - Shares of most of the railway sector related companies declined as much as four per cent ahead of presentation of the first Rail Budget subsumed in the General Budget tomorrow.

Titagarh Wagons settled 4.06 per cent down at Rs 115.90 on BSE today, while Kalindee Rail Nirman (Engineers) ended 3.27 per cent down at Rs 113.95 from the previous close.

Texmaco Rail & Engineering lost 3.22 per cent and closed at Rs 106.65. Stone India went down by 2.94 per cent to settle at Rs 69.30.

Kernex Microsystems tumbled 3.27 per cent and was (Read More)

Passenger fares may be hiked marginally; exit rail stocks: analysts

Latest News - Rail related stocks have done well since December 26, 2016 when the market hit its recent low with counters such as Hind Rectifiers, Timken India, BEML, Kernex Microsystems, Titagarh Wagons, Texmaco Rail and Kalindee Rail gaining three per cent to 28 per cent till January 27. By comparison, the benchmark indices - the S&P BSE Sensex and the Nifty50 have gained eight per cent and nine percent each respectively, during this period.

Since the union budget would subsume the railways budget and internalise its revenues and expenditure, analysts believe these changes do not alter the overall aim and outlook of the budget, but will only change its format and presentation to some extent. The practice of presenting a separate railway budget was introduced by the British government 92 years ago to focus more on India's most important infrastructure network.

"We expect the finance minister to increase the capital outlay for the railways sector to (Read More)