Railway-linked stocks subdued after Prabhu's budget

Stocks of companies associated with the Indian railways plunged in the late afternoon trade session Thursday, even as Railway Minister Suresh Prabhu presented his maiden budget to the Lok Sabha.

Stocks of companies like Texmaco Rail and Engineering, Container Corporation of India, Kalindee Rail Nirman (Engineers), Stone India, Titagarh Wagons, Kernex Microsystems and Cimmco were trading in the red.

However, stocks of Hind Rectifiers and Transformers and Rectifiers (India) made gains during the period.

At the Bombay Stock Exchange (BSE), shares of wagon-maker Texmaco Rail and Engineering were trading down 6.47 percent (1.20 p.m.) at Rs.130.20 from the previous close of Rs.139.20.

The scrip of Container Corporation of India slipped by 2.26 percent at Rs.1,538 from the previous close of Rs.1,573.60.

Scrip of Kalindee Rail Nirman (Engineers) decreased 6.89 percent at Rs.131.10, moving down from its previous close of Rs.140.80.

Scrip of another company associated with the railways, Stone India, was trading lower by 8.25 percent at Rs.77.85 from its previous day's close of Rs.84.85 per equity share.

Selling pressure was also observed in stocks of wagon manufacturer Titagarh Wagons. The company's scrip declined by 4.70 percent at Rs.552 from its previous close of Rs.579.20.

Kernex Microsystems's stocks fell by 0.11 percent at Rs.46.50 from its previous close of Rs.46.55 per equity share.

Shares of Cimmco were down 6.54 percent at Rs.71.50 from its previous close of Rs.76.50.

However, healthy gains were made by Transformers and Rectifiers (India) and Hind Rectifiers.

The scrip of Transformers and Rectifiers (India) at the BSE was up 0.80 percent at Rs.188 from its previous day's close of Rs.186.50 per equity share.

While, the stocks of Hind Rectifiers were up 1.73 percent at Rs.79.20 from the previous close of Rs.77.85.

Investor sentiments were subdues in the post-afternoon trade session Thursday, even as Railway Minister Prabhu outlined various proposals to bring the public transporters finances in order and usher in investments for sustained development.

Various proposals related to increase in investments, erecting new rail infrastructure, rationing of energy consumption and sprucing of passenger amenities were announced by the minister.

Indian Railways, which is one of the largest railroad networks in the world, is suffering from lack of investments and upgradation of infrastructure to cater to the ever growing demand of passenger and freight movements.

The minister has sought to correct the investment deficit position of the railways by proposing new initiatives for generating financial resources like tying-up with pension funds and other debt-related instruments.

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