Mumbai: Stocks of companies associated with the Indian Railways reversed their early gains, as analysts did not see much for their benefit in the Rail Budget.
The stocks were trading with robust gains this morning, but lost momentum after the budget proposals were announced in the Parliament by Railway Minister Dinesh Trivedi.
Shares of Kalindee Rail Nirman (Engineers) slumped by 7.80 percent to Rs 103.45, while wagon maker Texmaco Rail and Engineering plunged 6.46 per cent to Rs 66.60 at the BSE . Kernex Microsystems slipped by 7.20 percent, Titagarh Wagons was down 5.90 per cent, while Gateway Distriparks fell
by 0.17 percent. However, Bharat Earth Movers was trading with a modest
gain of 0.63 percent.
Market expert SP Tulsian pointed out that the Budget did not make any announcement about specific order inflows.
"In the last 3-4 Rail Budgets the references of anti-collision devices (ACD) were specifically made in the Railway Budget but nothing has come."
Hence, the Railway Minister made no mention about it and this has disappointed Kernex Micro shareholders because that's the only company in the country which makes ACDs.
An increase in passenger fares across all classes, more than 100 new trains, enhanced frequency or routes for many others, and plans to hire more than one lakh employees were some of the key Rail Budget proposals.
Expers, however, feel the Rail Budget is a dull one and Trivedi's proposals are unlikely to be implemented.
Sachin Bhanushali, president and chief executive officer, Gateway Rail Freight said that a huge amount of implementation effort will be required. He said the target set for improving operating ratio from 95 percent level to 74 percent level by the end of the 12th Five Year Plan is going to be very difficult to achieve.