Rail stocks decline 3-5% ahead of Railway Budget

With maximum focus on safety, speed and infra development, Union Finance Minister Arun Jaitley will present the first Rail Budget subsumed in the General Budget on Wednesday. 

With higher expectations from the sector, the shares of rail-related companies are in focus, the shares of Texmaco Rail, Kalindee Rail Nirman, Titagarh Wagons and Kernex Microsystems were down three per cent to five per cent intraday.

On the other hand, the investors are looking for a safety fund for Railways reeling under a series of deadly derailments, development of new lines, station redevelopment and setting up of Rail Development Authority and High Speed Rail Authority in the Rail Budget.

Jaitley, who is likely to give more focus on infrastructure development such as new lines, doubling, station redevelopment and safety upgradation is likely to announce the creation of a separate safety fund of about Rs one lakh crore over the next five years out of which Rs 20,000 crore will be earmarked for 2017-18.

Texmaco Rail was quoting at Rs 104.75, down 1.78 per cent, Kalindee Rail Nirman was quoting at Rs 112 down 1.71 per cent, Titagarh Wagons was quoting at Rs 113.05, down 2.46 per cent and Kernex Microsystems was quoting at Rs 37.95, 4.89 per cent.