Railway sector-linked stocks have fallen amid caution ahead of the rail budget on Thursday.

Shares in Kalindee Rail Nirman Engineers Ltd, Siemens Ltd, Sanghvi Movers, Titagarh Wagons and Texmaco Rail & Engineering were down 1 to 2 per cent.

Railway Minister Suresh Prabhu will present the budget amid slender hopes for any big-bang reforms in the financially crippled sector.

Deutsche Bank says railway spending is likely to be flat in the budget due to the proposed pay hike recommended by the Seventh Pay Commission.

At 10.50 am the Kalindee Rail Nirman share was up 0.87 per cent at Rs 138.50 on the BSE, while Siemens Ltd was down 1.63 per cent at Rs 1,000.50.

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