Prabhu’s Maiden Budget Fails to Muster Investors Confidence in Railway Related Firms

26 Feb, Mumbai

Railway Minister Suresh Prabhu’s maiden budget on Thursday failed to muster investor confidence in the stocks of railway-related firms.
A majority of stocks associated with the railways plunged in the late afternoon trade session Thursday, after Prabhu outlined in the Lok Sabha the 2015-16 development and financial plans for one of the world’s largest railroad networks.
Stocks of companies like Texmaco Rail and Engineering, Container Corporation of India, Kalindee Rail Nirman (Engineers), Stone India, Titagarh Wagons and Cimmco were trading in the red.
However, the stocks of Hind Rectifiers, Kernex Microsystems and Transformers and Rectifiers (India) made gains during the period.
At the Bombay Stock Exchange (BSE), shares of wagon-maker Texmaco Rail and Engineering were trading down 6.03 percent (2.10 p.m.) at Rs.130.80 from the previous close of Rs.139.20.
The scrip of Container Corporation of India slipped by 2.77 percent at Rs.1,530 from the previous close of Rs.1,573.60.
Stocks of Kalindee Rail Nirman (Engineers) decreased 5.33 percent at Rs.133.30, moving down from its previous close of Rs.140.80.
The scrip of another company associated with the railways, Stone India, was trading lower by 6.48 percent at Rs.79.35 from its previous day’s close of Rs.84.85 per equity share.
Selling pressure was also observed in stocks of wagon manufacturer Titagarh Wagons. The company’s scrip declined by 4.06 percent at Rs.555.70 from its previous close of Rs.579.20.
Shares of Cimmco were down 7.19 percent at Rs.71 from its previous close of Rs.76.50.