Rail Budget fails to enthuse sector related stocks

Shares of companies related to the rail sector today plunged around 5 per cent on the Bombay Stock Exchange as the Railway Budget fell short of market expectations, analysts said.

Shares of leading engineering and wagon manufacturers like Bharat Earth Movers (BEML) and Titagarh Wagons settled down 4.5 per cent and five per cent after the presentation of Railway Budget.

"Stocks related to Railways were down as it failed to meet the expectations of the market. The increase in the capex by railways fell short of the market expectations. BEML, Texmaco, Titagarh Wagons ended the day in red," Bonanza Portfolio Assistant vice president Avinash Gupta said.

BEML closed at Rs 1,033, down 4.5 per cent on the BSE, while, Titagrah Wagons settled at Rs 417.35, down 5 per cent.

Earlier while presenting the rail budget, Railways Minister Mamata Banerjee announced schemes for developing 50 stations as world class stations, upgrading 375 as 'model' stations and construction of multi-functional complexes at 50 stations.