Rail stocks derail, slip up to 5 pc

Rail stocks today fell by up to 5 per cent after the Budget announcement for the sector failed to enthuse investor sentiment.

Shares of Stone India fell 4.98 per cent, Titagarh Wagons 4.63 per cent, Kernex Microsystems India 4.60 per cent and Container Corporation of India 0.57 per cent on BSE.

Finance Minister Arun Jaitley today announced a capital expenditure allocation of Rs 1.48 lakh crore for the Railways, the highest ever for the national transporter with a 13 per cent increase over last year, in an effort to put its flagging revenues back on track.

Presenting the 2018-19 Union Budget, Jaitley said with an allocation of Rs 1,48,528 crore for Railways, the focus was on strengthening the rail network and enhancing its carrying capacity. Last year, the allocation for Railways was Rs 1.31 lakh crore.

No major new trains were announced and the focus was more on modernisation besides passenger safety. The 92- year-old practice of a separate Railway budget was discontinued last year and was merged with the Union Budget. PTI