Rail stocks slide in absence of major announcement in budget

 Rail stocks today saw hectic selling pressure, falling as much as 10 per cent, in the absence of any major announcement in the interim Railway Budget.

Shares of Hind Rectifiers slumped 10.09 per cent, while Kernex Microsystems India tanked 4.04 per cent.

Among others, Kalindee Rail Nirman (Engineers) lost 1.81 per cent and Titagarh Wagons was down 1.33 per cent on the BSE.

"Shares of companies related to railways fell due to lack of major expected announcements. Kernex, Kalindee were some of the stocks impacted by the news," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.

Passenger fares and freight rates were left untouched today in the interim rail budget, which talks about plans about involvement of private sector and FDI as part of efforts to modernise the largest transport network in the country.

Presenting the interim budget for four months in the Lok Sabha, Railway Minister Mallikarjun Kharge said an independent Rail Tariff Authority is being set up to rationalise fares and there was a proposal to expand dynamic pricing of tickets in line with the airline industry.

The budget speech did not touch upon passenger fares or freight rates. Kharge later said no hike has been proposed.

Annual Rail Plan has been pegged at Rs 64,305 crore with a budgetary support of Rs 30,223 crore.