Railway-related stocks slip up to 19% ahead of Budget

MUMBAI: Shares of railway-related companies came under pressure on Tuesday ahead of Railway Budget.

Texmaco Rail & Engineering fell 18.93 per cent to touch intraday low of Rs 128.

Titagarh Wagons plunged 10 per cent to intraday low of Rs 617.40.

Kalindee Rail Nirman declined 17.76 per cent to intraday low of Rs 31; Kernex Microsystems fell 4.94 per cent to intraday low of Rs 49 while Stone India cracked 11.15 per cent to touch intraday low of Rs 81.20.

According to dealers, a lot of long positions were built ahead of the event. They believe that traders were taking some profits off the table.


Shares of railway-linked companies have surged sharply in the past one month on hopes of higher foreign investment in Indian railways. There are hopes that more private participation will be allowed in railway projects.

The railways stocks tend to rally ahead of the Budget and react accordingly once it is tabled. This time around traders are cautious even as there are hopes that the government may announce higher capex for railways.