Disappointment over rail budget dents railroad firms stocksMumbai: Disappointment over lack of any big ticket projects in the railway budget proposals for 2016-17 dented stocks of companies associated with the Indian railroads during a volatile mid-afternoon trade session on Thursday.Despite the fact
Mumbai: Disappointment over lack of any big ticket projects in the railway budget proposals for 2016-17 dented stocks of companies associated with the Indian railroads during a volatile mid-afternoon trade session on Thursday.
Despite the fact that the railway budget 2016-17 proposes to develop more infrastructure like freight corridors, new lines and electrification of old ones, it did little to cheer the equity markets.
Capital outlay in the railway budget has been perceived to be low, in order to meet the central government's fiscal deficit targets.
At the Bombay Stock Exchange (BSE), shares of major firms associated with the railway sector fell after the announcement of the railway budget.
Stocks of BEML declined by 3.29 percent to Rs.984.50 from previous close of Rs.1,017.95 per equity share (at 01:20 p.m.).
Siemens stocks fell by 1.06 percent to Rs.983.30 from their previous close at Rs.993.85.
Similarly, scrip of Reliance Industrial Infrastructure dropped by 1.61 percent to Rs.379.10 from the previous day's close at Rs.385.30.
The ABB India scrip fell by 1.37 percent to Rs.1,062.45 from the previous close of Rs.1,077.25.
Shares of Hindustan Construction Corporation (HCC) declined by 0.29 percent to Rs.17.30 per equity share from the previous close of Rs.17.35.
Larsen & Turbo (L&T) stocks dropped by 1.50 percent to Rs.1,096.60, from their previous close of Rs.1,113.25.
In the logistics space, shares of most major firms showed a significant rise.
Container Corporation of India's stocks rose by 0.09 percent to Rs.1,134.30 from their previous close of Rs.1,133.25.
The scrip of Gateway Distriparks gained by 0.61 percent to Rs.214.95 from its previous close at Rs.213.65.
Allcargo Logistics firm rose by 1.15 percent to Rs.150 from the previous day's close at Rs.148.30.
In contrast, Timken stocks fell by 2.31 percent to Rs.430 from the previous close at Rs.440.15 per equity share.
In the case of wagon makers, shares of all major firms showed a significant drop.
The shares of Kalindee Rail Nirman (Engineers) declined by 5.41 percent to Rs.127.70, moving down from their previous close of Rs.135.
Texmaco Rail and Engineering fell by 5.68 percent to Rs.123.60 from their previous close at Rs.131.05.
Stocks of Titagarh Wagons dropped by 5.45 percent to Rs.117 from the previous close of Rs.123.75.
Equity shares of other firms, such as Kernex Microsystems, Hind Rectifiers and Stone India declined, while those of MIC Electronics and KEC International surged.
Kernex Microsystems showed a fall of 4.50 percent to Rs.36.10 from its previous day's close at Rs.37.80.
Scrip of Hind Rectifiers declined by 4.69 percent to Rs.65.05 from the previous close of Rs.68.25.
Another firm, Stone India's stocks dropped by 1.84 percent to Rs.66.70 from its previous close of Rs.67.95 per equity share.
On the other hand, shares of MIC Electronics rose by 1.29 percent to Rs.19.80 from the previous day's close at Rs.19.35.
Scrip of KEC International surged by 4.17 percent to Rs.107.40 from its previous close of Rs. 103.10.
Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, said traders approached the railway budget with diminished expectations.