Railway related stocks slump after rail budget

Shares of eight companies whose business is related to railways dropped by 3.53% to 12.9% at 14:15 IST on BSE after the presentation of Railway Budget today, 8 July 2014

Texmaco Rail and Engineering (down 12.9%), BEML (down 5%), Titagarh Wagons (down 4.99%), Kalindee Rail Nirman (Engineers) (down 4.99%), Kernex Microsystems (India) (down 4.94%), Stone India (down 4.91%), Simplex Casting (down 3.96%) and Bharat Heavy Electricals (down 3.53%) edged lower.

Hind Rectifiers (up 2.18%), Container Corporation of India (up 2%) and Transformers & Rectifiers (India) (up 1.71%) gained.

Meanwhile, the S&P BSE Sensex was down 295.17 points, or 1.1% at 25,813.75

While presenting the Railway Budget 2014-15 in Parliament today, 8 July 2014, the Minister of Railways D V Sadananda Gowda highlighted increased passenger amenities, more safety measures, timely completion of projects and increased financial discipline

Sadananda Gowda said that to augment resources of Railways, the Budget has proposed schemes to facilitate procurement of parcel vans and rakes by private parties, special milk tanker trains, increased movement of fruits and vegetables in partnership with Warehousing Corporation and setting up Private Freight Terminals on public-private partnership (PPP) model.

According to the Budget estimates, the Railways will earn Rs 1,64,374 crore through various resources and will spend Rs 1,49,176 crore during 2014-15. The operating ratio is expected to be 92.5% which is 1% better than that in 2013-14.

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