Rail stocks fall as Sadananda Gowda presents Rail Budget 2014

MUMBAI: Shares of railways related companies, which had moved up sharply ahead of the railway budget, are witnessing profit booking even as the Railways Minister Sadananda Gowda is presenting the Rail Budget 2014.

The minister said railways need Rs 5 lakh crore to complete ongoing projects. There are 359 unfinished projects which require Rs 1.82 lakh crore for completion.

The Indian Railways has spent Rs 41,000 crore on laying 3,700 km new lines in 10 years.

The recent fare revision will net Rs 8,000 crore to Railways.

Speaking on the ambitious Diamond Quadrilateral project, the minister said, the railways will need funding of Rs 9 lakh crore.

The ministry is seeking cabinet nod to allow FDI in Railway Sector. Bulk of future projects will be financed via PPP route.

Railways will encourage corporates to adopt stations for improvement. It will be providing Rs 1,785 crore for over, under bridges near tracks.

It also aims to introduce speedy clearances for new rail tracks.

At 12:40 p.m.; Texmaco Rail Engineering fell 8.51 per cent, Titagarh Wagons was down 5 per cent, Stone India was 4.49 per cent lower, Kernex Microsystems declined 4.94 per cent and Kalindee Rail was down 3.51 per cent.

Transformers and Rectifiers gained 2.89 per cent and Hind Rectifiers moved up 1.34 per cent.

Benchmark indices also came under selling pressure in afternoon trade.

At 12:58 pm, the Sensex was at 25,934.89; down 165.19 points. The Nifty was at 7,727.95; down 59.20 points.