Railway stocks tumble; Stone India, Kernex, Texmaco worst hit
27th February 2013 08:18 AM
Railway related stocks plunged on Tuesday after the Railway Minister Pawan Kumar Bansal announced a disappointing Rail Budget for 2013-14. Stone India dropped the most with fall of 16.21%, followed by Kernex Microsystems (15.13%), Texmaco Rail (11.36%), Hind Rectifiers (8.82%), Titagarh Wagons (8.14%), BEML (2.80%) and Bartronics (0.6%). On the other hand, Zicom Electronic was the only gainer with rise of 4.24%."There were no fireworks in the rail budget. While linking freight to fuel costs is the right move, subsidized passenger fares account for bulk of rail losses and until that is addressed, the financial position of railways is unlikely to turn around quickly, and investment in the sector will languish," says Sonal Varma, economist, Nomura Financial Advisory and Securities (India).While DK Aggarwal, CMD, SMC Investments & Advisors said, "Given the state of Railway Finances, this budget can be termed as a balanced budget but certainly cannot be termed as growth boosting budget at the time when the expectations from the government is high."The Railways Minister announced a plan to link freight charge revisions to fuel costs. As diesel prices have risen recently, freight rates were increased by around 5%, which raises transportation costs for bulk goods. Passenger fares were not affected, perhaps because they were hiked by around 21% a month ago in a non-budget related move. But, charges for super-fast trains will rise, as will fees for ticket cancellation and reservations. Gross budgetary support to railways has risen by 8% y-o-y to Rs 260 billion in FY14 versus a 20% rise in the FY13 budget.
- For team Rahul, it’s good politics that will yield rich dividends for poor Indians
- Four years of UPA-II
- Nine years as PM: What will be Manmohan Singh's legacy?
- Maharashtra’s aid to digitise rare manuscripts in Thanjavur
- 'Climate change may spell disaster for coastal economy'
- Lanka’s woman Thavil players fading away
- Pakistan's answer to electricity shortages: Don't wear socks
- All dead, no vultures fly in Andhra now!
- CM can go his way: Ramesh Chennithala
- BSNL Ernakulam posts Rs 390-crore turnover
- Knowledge and faith
- BrahMos missile test fired from Russian warship
- Names of UPA ministers will surface in IPL spot-fixing: Swamy
- Yasin Malik’s support for Sri Lanka Tamils a sham
- Incredible India! Cuppa at Rs 1,200 is Chiru’s idea of sustainable tourism
- Chandy aborted Chennithala’s Cabinet berth: NSS