Rail stocks dwindled ahead of Rail Budget

On this historic day, when Union Budget has been combined with Railway Budget after 92 years, Indian markets opened flat to positive. Union Finance Minister Arun Jaitley will present the first Rail Budget subsumed in the General Budget.

However, railway stocks dropped in early trades on Wednesday. The share price of Texmaco Rail and Engineering, Kalindee Rail Nirman (Engineers), Titagarh Wagons and Kernex Microsystems (India) were down in the range of 3 per cent to 5 per cent. These shares of rail-related companies are in focus as Rail Budget will be tabled in the Parliament.

Investors are looking for a safety fund for railways reeling under a series of deadly derailments, development of new lines, station re-development and setting up of Rail Development Authority and High Speed Rail Authority in the Rail Budget.

The Budget is likely to declare creation of a separate safety fund of about Rs 1 lakh crore over the next five years out of which Rs 20,000 crore will be reserved for 2017-18.