Most railway-linked stocks wiped off their morning gains to settle up to 10 per cent lower on Wednesday after the Railway Budget failed to offer any substantial earnings visibility for these railway-component companies. There was no talk of foreign direct investment (FDI) in the sector, which further affected investor sentiment towards these stocks.
Hind Rectifiers plunged 10.09 per cent to Rs 31.65 per cent; Texmaco Rail & Engineering tanked 4.19 per cent to Rs 41.20.
Kernex Microsys, Titagarh Wagons, Kalindi Rail, Bartronics India, TRIL and Zicom Electronics declined between 1 per cent and 4 per cent. Stone India settled flat.
The railway minister Mallikarjun Kharge announced 17 new premium trains, 38 express trains, 10 passenger trains, 4 MEMU and 3 DEMU.
This is in contrast with 67 express trains, 26 passenger trains, five MEMU and eight DEMU announced in previous year’s railway budget for the ongoing financial year, data available with Capitaline showed.
The annual outlay has been set at Rs 64,305 crore, a marginal 1.4 per cent rise of Rs 63,363 crore set for FY14 and 8.32 per cent rise over the revised annual outlay for FY14 (at Rs 59,359 crore).
“There was not much for railway-component firms in the vote-on-account; there were no major expectations by marketmen either. Despite this, many of the railway-linked stocks had risen over past couple of months. These were the stocks that hurt most on Wednesday,” said Rikesh Parekh of Motilal Oswal Financial Services.
Brokerage Sharekhan in a note said, “The rail ministry left train fares and freight rates unchanged in its interim railway budget, as politicians try to please voters and manufacturing companies ahead of national elections due in the next three months.”
Texmaco Rail settled lower after rising as much as 1.75 per cent in the morning trades. Despite Wednesday’s losses, the stock has climbed around 40 per cent in the last three months.
Titagarh Wagons was up 4.80 per cent in the intra-day trades before settling 1.33 per cent lower. The stock was up 9 per cent in the last two months till Tuesday.
Kalindi Rail Nirman was also quoting around 4.38 per cent higher in the morning trades before settling 1.81 per cent lower. This stock had been volatile. It has fallen around 18 per cent since January 8, after rising 25 per cent in the preceding month.
Railway stocks had also declined up to 9 per cent on February 26, 2013 when the FY14 Rail Budget was announced. These stocks did not recover later as seen from the fact that none of them could manage to outperform the broad market since last year’s railways budget.
Hind Rectifiers plunged 10.09 per cent to Rs 31.65 per cent; Texmaco Rail & Engineering tanked 4.19 per cent to Rs 41.20.
Kernex Microsys, Titagarh Wagons, Kalindi Rail, Bartronics India, TRIL and Zicom Electronics declined between 1 per cent and 4 per cent. Stone India settled flat.
The railway minister Mallikarjun Kharge announced 17 new premium trains, 38 express trains, 10 passenger trains, 4 MEMU and 3 DEMU.
This is in contrast with 67 express trains, 26 passenger trains, five MEMU and eight DEMU announced in previous year’s railway budget for the ongoing financial year, data available with Capitaline showed.
The annual outlay has been set at Rs 64,305 crore, a marginal 1.4 per cent rise of Rs 63,363 crore set for FY14 and 8.32 per cent rise over the revised annual outlay for FY14 (at Rs 59,359 crore).
“There was not much for railway-component firms in the vote-on-account; there were no major expectations by marketmen either. Despite this, many of the railway-linked stocks had risen over past couple of months. These were the stocks that hurt most on Wednesday,” said Rikesh Parekh of Motilal Oswal Financial Services.
Brokerage Sharekhan in a note said, “The rail ministry left train fares and freight rates unchanged in its interim railway budget, as politicians try to please voters and manufacturing companies ahead of national elections due in the next three months.”
Texmaco Rail settled lower after rising as much as 1.75 per cent in the morning trades. Despite Wednesday’s losses, the stock has climbed around 40 per cent in the last three months.
Titagarh Wagons was up 4.80 per cent in the intra-day trades before settling 1.33 per cent lower. The stock was up 9 per cent in the last two months till Tuesday.
Kalindi Rail Nirman was also quoting around 4.38 per cent higher in the morning trades before settling 1.81 per cent lower. This stock had been volatile. It has fallen around 18 per cent since January 8, after rising 25 per cent in the preceding month.
Railway stocks had also declined up to 9 per cent on February 26, 2013 when the FY14 Rail Budget was announced. These stocks did not recover later as seen from the fact that none of them could manage to outperform the broad market since last year’s railways budget.