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Rail stocks plunge up to 13 per cent on profit-booking

Rail stocks plunge up to 13 per cent on profit-booking

In its budget preview, broking firm Motilal Oswal Securities Ltd said, "Rail Budget is likely to launch a plethora of initiatives along with an improvement in its finances."

Mumbai: Rail stocks on Tuesday fell up to 13 per cent on heavy profit booking ahead of the Railway Budget for 2015-16 on Thursday. Shares of Kalindee Rail Nirman (Engineers) Ltd plunged 12.62 per cent, Titagarh Wagons slumped 9.99 per cent and Texmaco Rail & Engineering tanked 9.21 per cent on the BSE.

Among others, Stone India fell by 7.71 per cent and Kernex Microsystems India was down 4.95 per cent. In its budget preview, broking firm Motilal Oswal Securities Ltd said, "Rail Budget is likely to launch a plethora of initiatives along with an improvement in its finances."

"We expect railways to report an improvement in finances, bolstered by freight revenue, announce new innovative sources of funding and make some headway in taking the PPP schemes forward, besides announcement toward improvement in infrastructure, operations and passenger amenities," it said.

Share prices of companies in the rail sector have rallied quite sharply in recent weeks. "Budget allocation to improve the rail infrastructure will be positive for companies dependent on railway orders," said Daljeet S Kohli, Head of Research, IndiaNivesh Research.

first published:February 24, 2015, 19:18 IST