Railway linked firms' stocks rise ahead of budget

Stocks of companies associated with the railways rose around noon Monday a day before Railway Minister D.V. Sadananda Gowda is slated to present the new government's rail budget to the Lok Sabha.

The markets expect the budget to bring in fiscal stability in the railways and fund inflows for modernisation, in line with the new government's proposal for infrastructure development through public private partnership (PPP) models.

There are also speculations of allowing foreign funds into the railways by opening the sector to attract investment.

At the Bombay Stock Exchange (BSE), shares of wagon maker Texmaco Rail and Engineering grew 5.59 percent or 7.20 points to trade at Rs.136.10 around 12.30 p.m., rising from its previous close of Rs.128.90.

Scrips of Kalindee Rail Nirman (Engineers) increased 4.96 percent or 6.40 points at Rs.135.35, moving up from previous close of Rs.128.95.

Stocks of another wagon manufacturer, Titagarh Wagons, reported gain of 3.22 percent or 10.15 points at Rs.325 from its previous close of Rs.314.85. Hind Rectifiers shares too made healthy gains, they rose 3.95 percent or 2.25 points at Rs.59.20 from previous close of Rs.56.95.

Container Corporation of India's stocks gained 3.04 percent or 38.60 points at Rs.1,307.90 from its previous close of Rs.1,269.30.

However, shares of Transformers and Rectifiers (India) saw a decline of 1.35 percent or 2.95 points at Rs.216. Another firm, Stone India's stocks fell by 2.07 percent or 0.95 points at Rs.45.