Grapes of growth: Sahyadri’s fruitful proposition
Can this collective — a for-profit company owned entirely by growers — become the Amul for fruits and ...
Rail stocks on Friday fell sharply by up to 14 per cent on the Bombay Stock Exchange after the Railway Budget 2011—12 announcement, which according to market players failed to bring any great surprises for the investors.
Shares of companies related to Indian Railways, including Kalindi Rail Nirman, Titagarh Wagons, Kernex Microsystems (India) emerged as the major laggards.
Kalindi Rail Nirman shed 13.74 per cent to finally close the day at Rs 116.45. In intraday session, the stock plunged by 17.77 per cent hitting a 52-week low of Rs 111 on the BSE.
Similarly, the wagon manufacturer Titagarh Wagons shares dipped by 13.06 per cent to settle at Rs 331.80.
“The Railway Budget sounds ambitious to state the least but given the track record, especially of last year, implementation seems unlikely again. For instance, the minister targets 700 km of rail line addition in FY12, compared to 180 km average,” IIFL—India Private Clients Head (Research), Mr Amar Ambani, said.
He further added that no change in passenger rates was along the expected lines as part of the populist measure.
“All—in—all, a negative Budget on expected lines”, Mr Ambani said.
Further, railway equipment provider Kernex Microsystems (India) finished the day at Rs 94.60, down by 4.97 per cent.
Heavy equipment major, Bharat Earth Movers Ltd (BEML), and Stone India were another turn off for the sector losing 2.90 per cent and 7.53 per cent, respectively.
Voicing Mr Ambani’s opinion, MAPE Securities Head (Research), Mr Kislay Kanth, said “There are very few revenue enhancement strategies and plan to reduce the losses, since rates for freight and passengers could not be increased in an inflationary environment.”
However, bucking the trend were Container Corporation Of India and Gateway Distriparks whose shares rose by 3.15 per cent and 0.65 per cent to close the day at Rs 1,130 and Rs 115.85, respectively.
Meanwhile, after a volatile session, the BSE benchmark index Sensex ended the day at 17,700.91, up 68.50 points from its previous close.
Please Email the Editor