Rail Stocks Fall; Titagarh Wagons Slumps 4%

Railway infrastructure stocks were trading on a volatile note amid announcement of Railway Budget by Suresh Prabhu.

Railway stocks fell as much as 7 per cent in the afternoon deals. Stone India was the top loser from this sector. The stock slumped 8 per cent to Rs 78. Titagarh Wagons, Kalindee Rail Nirman, Texmaco and Simplex Casting declined 3.5-5 per cent each.

However, Hind Rectifiers gained over 2 per cent.

Mr Prabhu said railways will go through transformation in five years and will increase track capacity by 10 per cent to 1.38 lakh km. He also emphasised that capacity on high density network will be improved.

Mr Prabhu said government will increase investment in its overloaded rail networks to Rs 8.5 lakh crore over next five years and promised to modernise existing tracks and introduce faster trains.

Most of the rail stocks had rallied on hopes that the government's focus on infrastructure will lead to higher private investment in railways. Analysts believe investment can get a boost on account of falling oil prices as oil is a major input cost for railways.

Over the last one month, Titagarh Wagons shares have rallied over 60 per cent; they have surged over 500 per cent in the last one year. BEML, which supplies equipment like rail coaches, has rallied over 350 per cent in last one year.

Stone India, which supplies electro-mechanical products to Indian railways have gained 450 per cent in last one year.