Rail Budget a non-event for markets: Analysts

Market analysts today dismissed the Railway Budget as a "non-event" for the stock markets saying it was mostly on the expected lines and was discounted in the prices earlier.

"The Railway Budget is a non-event from the market perspective even though it is overall positive in its intent and future direction. The budget is devoid of any major populist measures and is focused on developing and improving railway infrastructure," Angel Broking Chairman and Managing Director Dinesh Thakkar said.

The Railway Budget addresses the need of the industry with respect to infrastructure. The budget aims to have more freight corridors and plans to set up 10 auto, auto-ancillary hubs across the country, he pointed out and said these are positive steps in the budget.

"Smart investors bought the shares much ahead of the budget and witnessed a run-up rally. Overall, the budget was good for all, but scrip of engineering and wagon manufacturing companies witnessed heavy sell off following the budget," SMC Global Vice-President Rajesh Jain said.

Shares of wagon manufacturer Titagarh Wagons plunged 8.33 per cent during the day to a low of Rs 371.50. It later settled at Rs 378.30, still down 6.66 per cent.

"It seems like railway stocks see few near-term benefits, possibly given the financial constraints of railways and have shed any gains made in recent weeks," India Infoline Vice-President (Research) Amar Ambani said.