Rail stocks fall as much as 6 pc ahead of budget

Stocks of companies related to the railway sector today fell up to 6 per cent a day ahead of the rail budget.
Shares of Texmaco Rail & Engineering tumbled 2.90 per cent, while BEML dropped 0.50 per cent on the BSE.
Shares of Titagarh Wagons fell 6.19 per cent, Kernex Microsystems (5 per cent) and Hind Rectifiers (4.01 per cent).
Two companies -- Kalindee Rail Nirman and Stone India -- however defied the broader market trend and settled in the positive territory with gains of 1.15 per cent and 0.59 per cent respectively.
Railway Minister Suresh Prabhu would unveil the Rail Budget tomorrow which may contain proposals for 'Make in India' initiatives besides enhancing safety and security.

Minister of State for Railway Manoj Sinha had earlier ruled out a reduction in fares in the context of lowering of diesel rates but Prabhu is expected to make a tight rope walk as he tries to bridge the huge gap in finances while presenting his maiden budget in the Lok Sabha.
Prabhu is likely to unravel his grand plans of how to decrease the cross-subsidy for passenger service from freight earnings which is touching Rs 24,000 crore and the steps to increase goods transportation share in the national transporter with or without hiking fares.