At close, the Sensex was down 693.86 points or 0.85 percent at 81,306.85, and the Nifty was down 213.65 points or 0.85 percent at 24,870.10. About 1695 shares advanced, 2205 shares declined, and 144 shares unchanged.
Shares of railway stocks Railtel Corp, Texmaco Rail, Rail Vikas Nigam, Titagarh Rail, Jupiter Wagons and IRFC surged 15-26 percent in the past month.
Railway stocks are back on track! Prominent names like Jupiter Wagons, IRFC, Texmaco Rail, Titagarh Railsystems and RailTel Corp have surged 15-26% in the past month, leaving their July-October correction in the dust.
Texmaco Rail stock has risen around 18 percent so far this year, outperforming Nifty's returns of 12 percent. In the past 12 months, the counter has gained 68 percent.
'Texmaco is benefiting from surging railway capex. A potential demerger of the rail EPC business can be a key re-rating trigger,' Nuvama said.
Texmaco Rail stock has zoomed over 230 percent in the last one year, more than tripling investors' money. In comparison, Nifty delivered returns of 26 percent during this period.
Analysts project railway companies to likely expand their capex and sustain volume growth, thus boosting investor confidence even at high valuations.
Texmaco Rail is likely to dilute 4.21 percent equity to raise funds at an indicative price of Rs 155 for the QIP, CNBC-TV18 reported.
All sectoral indices closed in the red, with auto, oil & gas, power and realty down 2 percent each
In the last one year, Texmaco Rail stock has delivered multibagger returns of 344 percent, more than quadrupling investors' money.
Most of the railway stocks had run up in the last month anticipating continued capital expenditure for railways in the budget
The order win comes days after the the company raised Rs 744 crore via Qualified Institutional Placement in November