Rail stocks slide in absence of major announcements in interim Railway budget

Shares of five companies whose fortunes are linked to orders from Indian Railways fell by 2.18% to 7.39% at 13:31 IST on BSE in absence of major announcements in the Interim Railway Budget 2014 today, 12 February 2014.

Kernex Microsystems (India) (down 4.72%), Kalindee Rail Nirman (Engineers) (down 2.79%), Titagarh Wagons (down 2.18%), Stone India (down 2.29%) and Hind Rectifiers (down 7.39%) edged lower.

Meanwhile, the S&P BSE Sensex was up 114.23 points or 0.56% at 20,477.60

Railway Minister Mallikarjun Kharge kept passenger and freight rates unchanged in the Interim Railway Budget 2014 presented in the Lok Sabha at about 12:00 IST today, 12 February 2014.

Presenting the Budget in Parliament today, 12 February 2014, the Minister of Railways Mallikarjun Kharge announced 72 new trains, extension of three trains and increase in frequency of three trains.

The Budget presented today envisaged investment of Rs 64305 crore as against revised estimates for the year ending March 2014 of Rs 59359 crore. Anticipating a healthier growth of economy, the freight traffic target is proposed at 1,101 million tonnes, an increment of 49.7 million tonnes over the current years' revised target of about 1052 million tonnes. The Gross Traffic Receipts have been projected at Rs 160775 crore. Working Expenses have been proposed at Rs 110649 crore, which is Rs 13589 crore higher than the Revised Estimates for the current year.

The Minister said that Investment in Railways is being stepped up by partnership with the private sector. PPP projects related to rolling stock manufacturing units, modernisation of railway stations, multi-functional complexes, logistics parks, private freight terminal, freight train operations, liberalised wagon investment schemes and Dedicated Freight Corridors are in the pipeline. Apart from attracting private investments from domestic investors in rail sector, a proposal is under consideration of the Government to enable Foreign Direct Investment (FDI) to foster creation of world class rail infrastructure.

Railways Minister said given the promising trend of loading, the target has been scaled up to about 1052 million tonnes from the budget target of 1047 million tonnes and freight earnings targets revised to Rs 94,000 crore. He announced that an independent Rail Tariff Authority is being set-up to advise the Government on fixing of fares and freight.

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