Sixteen shares of cement, steel, fertiliser and PSU OMCs fell by 0.11% to 2.14% at 15:20 IST on BSE after reports trickled in after presentation of Railways Budget 2015-16 that govt. has raised freight rates for coal, urea, cement and iron & steel.
Meanwhile, the S&P BSE Sensex was down 267.90 points or 0.92% at 28,740.09.
Among cement stocks, ACC (down 0.98%), Shree Cement (down 1.3%), Ambuja Cements (down 0.11%), and UltraTech Cement (down 1.28%), declined.
Grasim Industries rose 0.25%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Among steel stocks, JSW Steel (down 0.62%), Tata Steel (down 1.07%), and Steel Authority of India (Sail) (down 2.14%) declined. Bhushan Steel (up 0.74%) and Jindal Steel & Power (up 0.68%) gained.
Among mining stocks, Sesa Sterlite fell 0.36%. NMDC rose 0.74%.
Also Read
Among PSU OMCs, BPCL (down 0.34%), HPCL (down 1.58%) and Indian Oil Corporation (down 0.14%) declined.
Coal India dropped 0.84%.
Among fertiliser sticks, National Fertilizer (down 1.98%), Gujarat Narmada Valley Fertilizers Chemicals (GNFC) (down 0.56%), Gujarat State Fertilizers & Chemicals (GSFC) (down 2.13%), Rashtriya Chemicals & Fertilizers (down 2.93%), and Tata Chemicals (down 2.18%) declined.
Railway Minister Suresh Prabhu presented railway budget 2015-16 in parliament today, 26 February 2015. As per reports, the government has announced hike in freight rates for several sectors like cement, coal & iron & steel, oil etc. The government reportedly raised freight rate by 3.1% for scrap & pig iron, 2.7% for slag, 0.8% for kerosene and 0.8% for LPG. Freight rate is also hiked for cement by 2.7%, 0.8% for iron & steel, 10% for urea and 6.3% for coal. However, freight rate is lowered by 1% for high-speed diesel (HSD).
Hike in freight rates will increase transportation costs of raw materials for the companies.
Powered by Capital Market - Live News