Mumbai: In step with overall buoyant trend, share prices of companies that cater to the railway sector Friday saw huge buying, surging in range of 2-11 percent after a poor show on Rail Budget day.
Texmaco Rail & Engineering soared 10.61 percent, Titagarh Wagons climbed 10 percent and Cimmco surged 9.94 percent on the BSE.
Among others, Kalindee Rail Nirman jumped 3.70 percent, Stone India Ltd 3.51 percent, Container Corporation of India 2.21 percent, Simplex Castings 1.94 percent and BEML 1.55 percent.
These stocks had fallen up to 7 percent yesterday.
Ahead of Modi government's first full Budget, the benchmark Sensex today logged its best daily gain in almost six weeks, spurting 473 points to regain 29000 level after Economic Survey made a strong pitch for big-bang reforms while projecting faster growth and improved fiscal situation.
".... A pragmatic and a transformational railway budget which laid down a vision for modernization/up gradation of overall rail infrastructure and enhancement of customer experience, which was beyond the announcement of new trains," said Devang Mehta, Sr VP & Head - Equity Advisory, Anand Rathi Financial Services.
The Railway Budget yesterday hiked freight rates on cement, coal, foodgrain and pulses, urea, kerosene and LPG by up to 10 percent to mop up an additional Rs 4,000 crore a year but spared passengers from any raise in fares while ruling out privatisation.
The Budget hiked the plan outlay for 2015-16 by 52 percent to Rs 100,011 crore over the revised estimate of 2014-15.
"We believe that the large increase of 52 percent in plan allocations should result in increased order flows for companies in the rail infrastructure space ranging from rails, signaling, wagons and rolling stock among others. The 52 percent higher plan allocation has been the key takeaway of the Rail budget," said R Sreesankar Head ? Insitutional Equities Prabhudas Lilladher.
