Rail stocks fall as much as 6% ahead of budget

Mumbai: Stocks of companies related to the railway sector today fell up to 6 percent a day ahead of the rail budget. Shares of Texmaco Rail & Engineering tumbled 2.90 percent, while BEML dropped 0.50 per cent on the BSE.[caption id=“attachment_2118147” align=“alignleft” width=“380”]  Rail stocks under pressure. Reuters[/caption] Shares of Titagarh Wagons fell 6.19 percent, Kernex Microsystems (5 percent) and Hind Rectifiers (4.01 percent). Two companies — Kalindee Rail Nirman and Stone India — however defied the broader market trend and settled in the positive territory with gains of 1.15 percent and 0.59 percent respectively. Railway Minister Suresh Prabhu would unveil the Rail Budget tomorrow which may contain proposals for ‘Make in India’ initiatives besides enhancing safety and security. Minister of State for Railway Manoj Sinha had earlier ruled out a reduction in fares in the context of lowering of diesel rates but Prabhu is expected to make a tight rope walk as he tries to bridge the huge gap in finances while presenting his maiden budget in the Lok Sabha. Prabhu is likely to unravel his grand plans of how to decrease the cross-subsidy for passenger service from freight earnings which is touching Rs 24,000 crore and the steps to increase goods transportation share in the national transporter with or without hiking fares. PTI