Sensex closes 105 pts up, Rail budget fails to enthuse market

3.30 p.m: If the Railway budget failed to enthuse the market, the post budget ramblings s enough to scare even the staunchest of bulls. A hike in passenger fare and a lot of lip service by setting up various committees has failed to prop up shares of companies catering to the railway sector. A post budget tussle between the railway minister and his party chief asking him to either roll back the hike or resign is clearly setting a very bad precident. This now literally puts water on all hopes of a strong budget.

Companies catering to rail sector closed lower. Kalindee Rail closed the day at 6.55 percent lower at Rs 104.85, Texmaco Rail was down 6.11 percent at Rs 66.85 while Kernex Microsystems closed 5.2 percent lower at Rs 87.60.

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Wipro’s promoters had announced auction of their shares, price of which was fixed at Rs 418, which was the floor price, against the market close of Rs 425.40.

Financial Technologies closed the day at Rs 825.75 a gain of 7.11 percent after the Bombay High Court cleared its way to start an equity exchange.

Patni closed the day at Rs 507, a gain of 6.9 percent. The company is going in for de-listing.

Financial Technologies gains 6.5% on High Court order

2.30 p.m: Financial Technologies has gained 6.5 per cent on a Bombay High Court order allowing the company to set up a an equity exchange.

Banking stocks meanwhile are trading higher ahead of the credit policy to be announced tomorrow. ICICI Bank trades 2.7 percent higher at Rs 954.10, Axis Bank is up 2.96 percent at Rs 1277.80.

Railways sector stocks fall as budget disappoints

1.30 p.m: Markets continue to remain subdued as the railway ministry completed his speech. The minister has budgeted for a lower borrowing for the new fiscal.A number of committees have been set up, but no implementation road map has been given.

Railway stocks have been volatile but have now moved lower. Kalindee Rail trades 4.6 percent lower at Rs 107.15, Texmaco Rail trades 6.6 percent at Rs 66, Kernex Micro is down 1.62 percent at Rs 90.90.

Sensex meanwhile trades 92 points at 17,906 while Nifty is up 31 points at 5460.

Financial Technologies trades 6 percent higher at Rs 819 after the High Court cleared a path for the company to start its own stock exchange.

12.15 p.m: Highlights of Railway Budget

Unmanned railway crossing to be removed in 5 years…..positive for Siemens and Kernex. Kernex moves higher – up 3%

Wants Rs 5 lakh crore in the current plan to meet all pending projects.

Operating ratio to reduce from 95 percent to 74 percent by end of current 5 year plan. Only way of doing so will be to either increase revenue or decrease cost.

Need Rs 14 lakh crore over the next 10 years.

Operating ratio deteriorated further to 95 percent.

Railways must get atleast 10 percent of government spend in infrastructure.

80% of traffic carried on 40 % of network. Very high density in some areas.

Plan to modernise 19,000 km of tracks…positive for Kalindee Rail.

Increase train speed to 160 kmph—positive for Siemens and Kalindee Rail.

Investing needed in tracks and signals.

Aim railway to account for 2-2.5 percent of GDP against 1% currently.

Allocation to signalling doubled….good for Kernex and Siemens

New wagons to be introduced — good for Titagarah, Texmaco and BEML

Higher speed of trains will increase revenue and reduce time for travel.

Station and train terminal to be modernised.

Indian Railway Station Corporation— to maintain railway station, unlocking real estate – will be through public private investment route.

Doubling of line – 750 km to be completed this year. Budget allocation increased — good for Kalindee Rail and SAIL

12.00 p.m: Railway minister Dinesh Trivedi rises to present the railway budget.

Companies catering to the railways have seen a fall in share prices indicating little expectation from the budget.

Stone India is down 2.9 percent, Texmaco is down 1.9 percent, Titagarh Wagons is down 2.6 percent while Kalindee Rail is down 1.11 percent.

Sensex meanwhile is up 75 points at 17,888 and Nifty is up 25 points at 5454.

US passes stress test, BSE, NSE see gains

11.15 am: Stress test in the US on its banks have proved that most of them can sustain a slowdown and reduction in share and housing prices. This has helped the sentiment across the globe.

Indian markets too opened higher, with the BSE Sensex presently trading at 17,912 - up 99 points while NSE Nifty is up 31 points at 5,461.

The High Court has set aside an order by Sebi on MCX with regard to the latter starting its stock exchange. Following this, MCX moved up sharply and presently trades 1.7 percent higher at Rs 1,305.

Axis Bank trades 1.95 percent higher at Rs 1,265 even as Schroders Investment Management is said to be in talks to buy 30 percent stake in its mutual fund.

[caption id=“attachment_243491” align=“alignleft” width=“380” caption=“Indian markets too opened with a gap with BSE Sensex presently trading at 17,912 - up 99 points while NSE Nifty is up 31 points at 5,461.”]  [/caption]

Cairn India trades 0.7 percent higher at Rs 379 after the company agreed to double the compensation to the farmers who have objected to a pipeline across their farms.

Coal India trades 1 percent higher at Rs 347 on news of the company planning to raise prices of coal in April 2012.

HCL Technologies trades 0.35 percent higher at Rs 507 on news of the company recieving a multi-year contract from Union Bank of Switzerland estimated at $250 million to 300 million.

HCC trades 1.7 percent lower at Rs 28.70 on news of the a consortium of 37 banks will decide on the company’s corporate debt restructuring plan.

Reliance trades 0.8 percent lower at Rs 813.80 on news of the company being affected by a sharp reduction in refining margin.

Infosys trades 0.66 percent higher at Rs 2878.60 after the company declared that it won a large order from GlaxoSmithKline.

REC trades 1.20 percent higher at Rs 226.60 after it was known that the company would raise Rs 656 crore from Germany based KfW Bankengruppe for financing renewable energy projects in India.