Railway Budget 2016: Suresh Prabhu’s infra push a big plus for stocks

Railway stocks and the broader market fell on Thursday after the Railway Budget. But the budget’s highlights, which include higher capex spending for next year, investment in new freight corridors, a sharp increase in electrifi cation, and new projects for logistics and cold storage signal the focus on infrastructure remains intact. ET Markets picks the winning stocks from this year’s Rail Budget:

50% more electrification Positive for KEC International, Kalpataru Power Transmission, Siemens, Alstom

Enhancing 7 km a day broad gauge lines in FY17 to 13 km by FY19 Positive for L&T, KEC International, Kalindee Rail Nirman

No hike in freight charges Positive for Coal India, UltraTech Cement

Three new freight corridors
Positive for Concor & Gateway

Two locomotive factories for Rs 40,000 cr Positive for BHEL, BEML

Wi-fi services in additional 100 stations in 2016 and 400 stations in 2017 Positive for D-Link, Smart Link

CCTV for surveillance, Tatkal counters Positive for Zicom

17,000 bio-toilets in trains Positive for Sahyadri Ind, Stone India

Elevated rail corridors in Mumbai Positive for L&T, HCC, NCC, Gammon India, Simplex Infrastructure

Cold storages on rail land Positive for Snowman Logistics

To develop multi-modal logistics park Positive for Gateway Distriparks, Concor & Navkar Corp