Rail stocks today fell by up to 8.6% on the Bombay Stock Exchange (BSE) as cautious investors offloaded shares ahead of the Railway Budget, 2011-2012 to be presented tomorrow.
Among the major rail stocks, wagon manufacturer Titagarh Wagons was the worst hit. The counter slipped by 8.6% to settle at Rs 381.65 on the BSE.
Similarly, shares of Kalindi Rail Nirman witnessed a plunge of 5.96% to close the day at Rs 135.
Market experts said investors preferred remaining on the sidelines ahead of the Rail Budget, adding correction in the rail stocks is a great opportunity to invest in the sector.
Besides, railway equipment provider Kernex Microsystems (India) finished the day at Rs 99.55, down 4.96% from its previous close. Another major laggard was heavy equipment major Bharat Earth Movers (BEML), which dropped by 3.92% to close at Rs 633.90 on the BSE.
Meanwhile, the BSE benchmark Sensex also fell sharply by 545.92 points to settle at 17,632.41 today.