Rail stocks derail, fall up to 7% as Budget disappoints markets
Share prices of companies that cater to the railway sector plunged by up to 7 per cent today after the Rail Budget 2015-16 failed to boost investors' sentiment.
Mumbai: Share prices of companies that cater to the railway sector plunged by up to 7 per cent today after the Rail Budget 2015-16 failed to boost investors' sentiment.
Cimmco tanked 6.93 per cent, Stone India plunged 6.07 percent, Simplex Castings went down by 4.26 percent and Kalindee Rail Nirman (Engineers) tumbled 4.05 percent on the BSE.
Among others, Container Corporation of India was down 3.47 per cent, Texmaco Rail & Engineering fell by 2.51 per cent and BEML dropped 1.65 per cent.
In the broader market, the BSE benchmark Sensex fell by 261.34 points to 28,746.65 at close.
The Railway Budget today hiked freight rates on cement, coal, foodgrain and pulses, urea, kerosene and LPG by up to 10 per cent to mop up an additional Rs 4,000 crore a year but spared passengers from any raise in fares while ruling out privatisation.
While measures proposed in the Rail Budget such as reviewing the wagon-making scheme aim to make it attractive for private investors, profit-booking set in.
"Markets fell post railway freight rate hike," said Aamir Mir, Senior Analyst, HBJ Capital.
Presenting his maiden budget, the first full-fledged exercise of the Modi government, Railway Minister Suresh Prabhu did not announce any new trains or lines pending a review but said he would concentrate on consolidating the existing ones.
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Axis Bank was the top gainer in the Sensex pack, rising around 3 percent, followed by IndusInd Bank and ONGC, among others
Axis Bank was the top gainer in the Sensex pack, rising around 2%, followed by Bajaj Finance, SBI, Reliance Industries, ONGC and UltraTech Cement
IndusInd Bank was the top loser in the Sensex pack, shedding around 3 per cent, followed by ICICI Bank, Axis Bank and Tech Mahindra