Shares of steel companies involved in making train tracks, did not react positively to the proposals suggested in the Union Rail Budget on Thursday. Though the Budget proposed a boost to broad gauge track expansion.
At 1:30 PM, Jindal Steel and Power was trading down 4% at Rs 56, while shares of state-run Steel Authority of India (SAIL) were down 1.5% at Rs 34.80. This was also in line with the overall weak market sentiment, with the broader index at the BSE down 0.2%.
Among other measures, Union rail minister Suresh Prabhu suggested the building of two elevated suburban rail corridors in Mumbai and the building of three dedicated freight corridors - projects which are expected to lead to increased consumption of steel for making rail tracks.
Prabhu said the government will commission 2,800 km of new tracks next year and will surpass the target of commissioning 2,500 km of broad gauge lines, almost 30% higher than last year.
The Railway Budget also suggested capacity creation in the rail sector with an increased outlay of about Rs 1.21 lakh crore.