Scrips of railway-related firms decline after budget
Mumbai, Feb 26 : Scrips of companies related to Indian Railways declined at the end of Tuesday's trade after Railway Minister Pawan Kumar Bansal presented the railway budget 2013-14 to the Lok Sabha.
Companies such as Titagarh Wagons, Kalindee Rail Nirman, Kernex Micro, Stone India, Texmaco Rail and Engineering and Gateway Distripark declined at the Bombay Stock Exchange (BSE).
The state-run Container Corporation gained on proposed freight hike.
The decline came even after Bansal announcing that the Indian Railways plan to invest Rs.63,363 crore ($11.5 billion) in the new financial year beginning April 1, mainly on expansion of tracks and improving passenger safety.
Bansal added that the operating ratio of Indian Railways - the money spent on recurring costs to earn Re.1 in revenue - had come down to 88 paise from around 95 paise.
However, the sentiments remained low for railways-related companies. Wagon and freight car-manufacturer Titagarh Wagons slipped heavily and stood at Rs.245.45 per share, down 8.14 percent from its previous close of Rs.260.80.
The scrip of anti-collision systems manufacturer Kernex Micro declined 15.13 percent and stood at Rs.44.30 from its previous close of Rs.52.20.
Kalindee Rail Nirman, a company involved in execution of railway tracks, signalling and telecommunication projects, closed the day's trade 11.62 percent down at Rs.70.35 from its previous close of Rs.79.60 per share.
Engineering firm Stone India, which is engaged in railway construction projects, too saw a decline. The stock closed lower by 16.21 percent at Rs.19.90 from its previous close of Rs.23.75 per share.
Engineering company Texmaco Rail and Engineering was down 11.36 percent at Rs.54.60 per share from Rs.61.60, its previous closing price.
Logistics company Gateway Distriparks' scrip also closed lower. The stock fell 0.89 percent at Rs.133.70 from its previous close of Rs.134.90 a share.
However, its state-run competitor Container Corporation gained 2.23 percent at Rs.1,012.95 from its previous closing price of Rs.990.90 per share.