Sensex tumbles 235 points on hike in freight rates
Mumbai: The BSE benchmark Sensex tumbled 235 points in mid-session trade Tuesday as selling pressure gathered momentum after a proposed freight hike in the railway budget.
After a lower start, the Sensex surrendered further ground to trade 234.72 points, or 1.21 percent down to 19,096.70 at 1330 hrs.
Similarly, the broad-based National Stock Exchange index Nifty lost 70.95 points, or 1.21 percent, to 5,783.80 at the same time.
The government proposed a hike of five percent freight rate in the rail budget which might increased burden on the corporate earnings.
Share prices of companies that cater to the railway sector were under pressure and tanked up to 8 percent as Railway Minister Pawan Kumar Bansal delivered his maiden Rail Budget in the Lok Sabha.
Brokers said there was no benefit announced for the railway wagon makers which dampened the sentiment further.
Kalindee Rail Nirman was the largest loser and dropped 8.10 percent on the BSE, followed by Hind Rectifiers which dropped 6.71 percent and Kernex Microsystems which fell by 6.42 percent.
Among others, Stone India tanked 6.53 percent, Titagarh Wagons was down 5.65 percent, Texmaco Rail (down 4.87 percent), Zicom Security (down 3.60 percent) and BEML (down 2.17 percent).