Railway stocks derail on profit taking, drop 5-10%

Railway stocks today declined in the range of 5-10% each, ahead of the Railway Budget on February 24, due to overall weakness in market coupled with profit taking. Most of these stocks had appreciated between 10-40% in last two weeks.

Kernex Microsystems and Kalindee Rail Nirman were frozen at the respective lower circuit filters at Rs 168 and Rs 203. Titagarh Wagons, Texmaco, Stone India and Hind Rectifiers declined 5-10% each on the BSE.

The Railway Budget 2010-11 is scheduled to be presented in the Lok Sabha on February 24.

Titagarh Wagons was the biggest loser in value terms, the stock shed Rs 42 or 9% at Rs 412 on the BSE. As many as 2.18 million equity shares changed hands at the counter when compared to average 803,000 shares traded in last two weeks.

Hind Rectifiers and Stone India were down 9% each at Rs 76 and Rs 66 on the BSE. Hind Rectifiers appreciated by 44% from Rs 58 on February 5 to Rs 83 on February 19 and Stone India by 19% to Rs 73 (Rs 61) during the period.

Texmaco declined 5% to Rs 149. Around 2.24 million equity shares changed hands on the counter against average 1.05 million shares in last two weeks.