Rail stocks decline 3-5% ahead of Rail Budget

Moneycontrol BureauShares of rail-related companies are in focus as the Rail Budget will be presented in the Parliament today. Finance Minister Arun Jaitley will present the first Rail Budget subsumed in the General Budget today.Shares of Texmaco Rail, Kalindee Rail Nirman, Titagarh Wagons and Kernex Microsystems were down 3 percent to 5 percent intraday on Wednesday.Investors are looking for a safety fund for railways reeling under a series of deadly derailments, development of new lines, station redevelopment and setting up of Rail Development Authority and High Speed Rail Authority in the Rail Budget. Jaitley is likely to give more focus on infrastructure development such as new lines, doubling, station redevelopment, safety upgradation. Reeling under a series of derailments, the Budget is likely to announce creation of a separate safety fund of about Rs 1 lakh crore over the next five years out of which Rs 20,000 cr will be earmarked for 2017-18, according to sources.At 09:25 hrs Texmaco Rail was quoting at Rs 104.75, down 1.78 percent, Kalindee Rail Nirman was quoting at Rs 112 down 1.71 percent.Titagarh Wagons was quoting at Rs 113.05, down 2.46 percent and Kernex Microsystems was quoting at Rs 37.95, 4.89 percent.Posted by Rakesh Patil