The stocks of a number
of rail-related companies fell on Thursday after the Rail Budget 2016 failed to
impress the investors on the revenue generation front and higher operating
ratio.
The budget also resulted in the indices of
broader market movement go down to 0.5-0.6 per cent. The stock prices of
companies like Titagarh Wagons, Timken India, Texmaco Rail and Engineering,
BEML, Kalindee Rail Nirman (Engineers), Hind Rectifiers, Stone India and Kernex
Microsystems declined in the range of 2.2-11 per cent. Pankaj Sharma, who
serves as the head of research at Equirus Securities said: “I am not excited
about the Budget as no fresh idea or innovation was announced. Also, I feel the
operating ratio for the next fiscal is definitely not achievable and it will
cross 92 per cent.”
Market participants are viewing the Rail
Budget as dull with no positive or immediate takeaways for the companies
catering to the railways. However, the Budget did not bring bad news for every
sector. Companies involved in electronic security products such as MIC
Electronics and Zicom Electronic Security Systems, bucked the trend with the
stocks ending with gains of 2.4-4.5 per cent. Bartronics is another stock which
benefitted due to Railway Minister Suresh Prabhu’s plan to use bar coded
tickets on pilot basis at some stations. Their stocks closed at two per cent. Due
to the fares not getting hiked, logistics companies Gateway Distiparks and
Container Corporation of India also ended up in the range of 3-4 per cent. Thursday’s
Rail Budget was the second one presented by Prabhu.
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