Disappointed with its status quo perspective towards industry and lack of concrete proposals, the markets termed the railway Budget a non-event. Stocks of related sectors traced a downward curve as they corrected on unmet expectations.
The budget speech of the railway minister failed to buoy the benchmark index of Bombay Stock Exchange, which fell over 30 points to 16,255 at the end of the day. The S&P SNX Nifty of National Stock Exchange closed over 11 points down at 4858 points. Sector specific stocks such as Titagarh Wagons fell 6.7 per cent while Texmaco lost 4.7 per cent. Kalindi Rail Nirman, lost 5 per cent on Wednesday.
Though the budget did not hint anything against these companies, with nothing concrete coming from the budget, the markets were disappointed. As these stocks had gone up prior to the budget, on expectations, correction was seen.
“Overall rail budget is good, but neutral from stock market point of view. As rail stocks were rallying much before rail budget, they are experiencing profit booking now,” said DD Sharma, VP Research – Retail, Anand Rathi Financial Services.
“The Railway Budget 2010-2011 was a non-event from the markets’ perspective even though it was overall positive in its intent and future direction. A status quo has been maintained from the industry’s (Steel, Cement, Coal etc.) perspective, as the freight tariffs were left unchanged,” said Dinesh Thakkar, Chairman and Managing Director of Angel Broking.