Mumbai: Share prices of companies that cater to the railway sector like Stone India, Kernex Microsystems and Kalindee Rail tanked by as much as 16 percent in the absence of big ticket announcements in the Rail Budget on Tuesday.Rail Budget 2013: Between the lines for Aam Aadmi
Railway Minister P K Bansal, the first Congress Minister to present Railway Budget in 17 years, failed to enthuse investors and railway-related stocks witnessed heavy selling.
Stone India was the largest loser and dropped by 16.21 percent on BSE, followed by Kernex Microsystems (15.13 percent) and Kalindee Rail Nirman (11.62 percent).
Among others, Texmaco Rail tanked by 11.36 percent, Hind Rectifiers was down 8.82 percent, Titagarh Wagons lost 8.14 percent and BEML fell by 2.80 percent.
"Overall neutral to positive budget as passenger fare and freight targets look reasonable and commensurate with the current growth rate. Reasonable allocations towards building of iron-ore and coal infrastructure. Market was expecting a marginal hike in passenger fare which did not come through," Aditya Birla Money Head of Research Vivek Mahajan said.
The Railway Minister today said that the railways will give a greater focus on safety devices -- anti-collision devices, automatic fire & smoke detection system among others.
Accordingly, the stocks of those companies which cater the security segment ended the day with gains defying the tepid broader market sentiment. Zicom Electronics was up 4.24 percent.
Commercial Engineers and Body Builders (CEBBCO) rose 1.41 percent and Container Corporation (Concor) was up 2.23 percent were also gainers.
Meanwhile, Railways is expected to fall short of targeted revenues by as much as Rs 7,491.66 crore mainly due to lower passenger and freight earnings.
As per official data, Railways is projected to see gross receipts Rs 1.28 lakh crore for the fiscal ending March 31, 2013, compared to the budget estimate of Rs 1.35 lakh crore.
It is expected that shortfall in revenue mobilisation, both from passenger and freight movement, will be to the tune of Rs 3,573 crore and Rs 3,383 crore respectively as compared to the Budget estimates for 2012-13.
First Published: Tuesday, February 26, 2013, 18:40