Railway Budget FY2009-10 review: Angel Broking

Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

The Angel Broking, in their report, said, "The first Railway Budget announced by the incumbent UPA led government, under the aegis of Union Minister, Mamta Bannerjee, can best be summed up as a pragmatic Budget devoid of any major populist measures. The Budget was focused on inclusive growth and expansion of the Railway Network to every corner of the country. As mentioned in the document, the Theme of the Budget is "to attain the objective of "inclusive growth", the focus will be on the commercial operations with a human face"."

Angel Broking report on the Railway Budget

"We believe, the Budget, though a non-event from the market point was a step in the right direction."

"The freight tariffs were left unchanged and hence would have no implications for the Industry. While no major policy initiatives were announced, taking the PPP route for development of Railway stations is a step in the right direction for building the rail infrastructure and would benefit Infrastructure companies in the space. Further, a host of measures announced such as private sidings for containers, private operation of freight terminals and assured transit time for

specific container cargo, we believe, will increase overall volumes for all rail container operators as it should improve turn-around time for exporters and importers. Moreover, dedicated freight corridor implementation is to be put on fast track along with identification of four dedicated freight corridors will result in rail containerisation gaining marketshare in the long term and benefit rail container operators of the likes of Concor and Gateway Distriparks. Along with this, addition of new trains and wagons of around 18,000 would be a positive for the manufacturers of rail coaches and wagons."

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 

To read the full report click on the attachment.....