Rail stocks lose steam; fall up to 9.3% post budget

Mumbai: Rail stocks Thursday witnessed heavy selling pressure, falling by up to 9.3 percent, as the Railway Budget for 2016-17 failed to lift investor sentiment.

Shares of Kalindee Rail Nirman Engineers tanked 9.26 percent, Texmaco Rail & Engineering dipped 8.78 percent and Titagarh Wagons slumped 8.40 percent on BSE.

Similar selling pressure was seen in Hind Rectifiers which tumbled 7.69 percent, Stone India (5.74 percent) and Kernex Microsystems (4.89 percent).

In the broader market, the BSE benchmark Sensex too fell by 112.93 points to end at 22,976.

"The Railway budget failed to cheer the market while the volatility coupled with derivative expiry derailed the important support level," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.

The budget today spared passengers and goods movement from any increase in tariffs while it announced introduction of three new superfast trains and creation of dedicated north-south, east-west and east coast freight corridors by 2019.

Presenting his second Budget in Lok Sabha, Railway Minister Suresh Prabhu promised rationalising of the tariff structure by undertaking a review to evolve competitive rates vis-a-vis other modes of transport and to expand the freight basket as a means of additional revenue mobilisation.