Rail Stocks Gain As Budget Announcement Begins

Railway infrastructure stocks erased most of their early losses and returned to positive territory as Suresh Prabhu started delivering the Railway Budget speech.

Titagarh Wagons jumped 3.5 per cent, Kernex Microsystems rallied 4.2 per cent, while BEML added 2.4 per cent.

Other railway stocks like Texmaco, Hind Rectifiers also gained over 6 per cent each.

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.

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.