Rail linked stocks fall as Railway Budget sees no big ticket investments

Commentary

oi-Sunil

By Sunil Fernandes

Published: Wednesday, February 12, 2014, 12:42 [IST]

Stocks closely linked to the Indian Railways for orders dropped in trade after the Union Railway Minister's Interim Railway Budget Speech was disrupted in the Lok Sabha today. No significant announcements and no major investments also affected sentiments for Rail linked stocks.

The stocks had opened significantly higher in morning trade, but, fell later in the day. Kalindee Rail Nirman, which is primarily into railway track, signaling & telecommunication projects on turn key basis was down 5 per cent in trade, while Texmaco Rail, which makes railway freight cars, among others was trading flat.

Kernex dropped as much as 3.6 per cent in trade at Rs 36 on the National Stock Exchange, while Titagarh Wagons was down 2.3 per cent.

Meanwhile, the Union Railway Minister said that FY15 annual plan was of Rs 64,300 crores. IRFC, the financing arm of Railways, will borrow Rs 12,800 cr from markets, he said.

"Connectivity to the North east would be the focus area," he observed.