Rail stocks on back foot for 2nd day, dip by up to 19%
Rail stocks continued to remain on the back foot for the second consecutive session on Friday, falling sharply by up to 19 per cent, as investors resorted to selling on disappointment over the Railway Budget for 2016-17.
Shares of Titagarh Wagons nosedived 18.88 per cent, Texmaco Rail & Engineering plunged 17.40 per cent and Kalindee Rail Nirman Engineers plummeted by 17.15 per cent on BSE. Similar selling pressure was seen in Stone India which tumbled 8.90 per cent, Kernex Microsystems (4.87 per cent) and Hind Rectifiers (0.39 per cent). In the previous session also, these stocks fell by up to 9.3 per cent.
Sharp fall in these stocks was in stark contrast with a positive broader market where the Sensex on Friday rose by 178.30 points to end at 23,154.30.
Railway Minister Suresh Prabhu on Thursday desisted from raising fares and freight rates in his second budget but promised to cut cost and exploit new sources of revenue beyond tariff as he announced three new super-fast trains and completion of as many freight corridors by 2019.
Plan outlay for Railways has been put at Rs 1.21 lakh crore for 2016-17, up by about 20 per cent from the current year's estimated expenditure.