Railway-related stocks fall on profit-taking ahead of budget
Railway-related shares have surged on hopes of foreign investment reforms
Mumbai: Railway-related stocks fall on profit-taking ahead of railway budget presentation later in the day. Shares in the sector have surged on hopes of reforms including opening of the sector to foreign investments under newly-elected Modi government, traders say.
Titagarh Wagons Ltd , which has risen 183 per cent in 2014 compared to the Nifty's gain of 23.65 per cent, falls 4.4 per cent. Texmaco Rail & Engineering Ltd is down 1.3 per cent and BEML Ltd slumps 3.7 per cent.
Any increase in the FY15 outlay for railways compared to 643 billion rupees ($10.73 billion) set in the previous budget would be seen as positive, investors say.
Also, any specific mention regarding increase in allocation or procurement for wagons will be positive for wagon manufacturers.