Railway-related stocks fall on profit-taking ahead of budget

Reuters Market Eye - Railway-related stocks fall on profit-taking ahead of railway budget presentation later in the day. Shares in the sector have surged on hopes of reforms including opening of the sector to foreign investments under newly-elected Modi government, traders say.

Titagarh Wagons Ltd , which has risen 183 percent in 2014 compared to the Nifty's gain of 23.65 percent, falls 4.4 percent.

Texmaco Rail & Engineering Ltd is down 1.3 percent and BEML Ltd slumps 3.7 percent.

Any increase in the FY15 outlay for railways compared to 643 billion rupees ($10.73 billion) set in the previous budget would be seen as positive, investors say.

 

Also, any specific mention regarding increase in allocation or procurement for wagons will be positive for wagon manufacturers.

($1 = 59.9400 rupees)

(abhishek.vishnoi@thomsonreuters.com / abhishek.vishnoi.thomsonreuters.com@reuters.net)