Railway, infrastructure related stocks trade mixed post Budget

GAINS AT HAND India has a huge need for investment in infrastructure facilities such as railway modernisation, port development, energy projects etc., all areas where China has both strength and experience. Photo: Reuters
Shares of railway and infrastructure related companies were trading mixed after Finance Minister Arun Jaitley presented the Budget for the financial year 2018-19 in Parliament on Thursday.

Titagarh Wagons, Kernex Microsystems (India) and Stone India were down 5% each on BSE. GMR Infrastructure, IL&FS Engineering and Construction Company, GVK Power & Infrastructure, Larsen & Toubro (L&T), Siemens, Hind Rectifiers and Zicom Electronic Security Systems were trading higher by up to 9%. On comparison, the S&P BSE Sensex was up 0.13% at 36,010 points at 02:31 PM.

The finance minister Arun Jaitley in his Budget speech has pegged FY19 railway capital expenditure at Rs 1.48 trillion. In order to create employment and aid growth, Government’s estimated budgetary and extra budgetary expenditure on infrastructure for 2018-19 is being increased to Rs 5.97 trillion against estimated expenditure of Rs 4.94 trillion in 2017-18.

Jaitley, in his Budget speech for FY 2019, said that the government has kept an aim to electrify 4,000 kms of railway lines in FY19. Focus will be on safety, maintenance of railway tracks, increase in use of technology and fog safety devices, FM said. All railways stations with more than 25,000 footfalls to have escalators, he added. All railways stations and trains to have Wi-Fi and CCTVs progressively, FM said.

“Strengthening the railway network and enhancing Railways’ carrying capacity has been a major focus of the Government. Railways’ Capex for the year 2018-19 has been pegged at Rs 1.48 trillion. A large part of the Capex is devoted to capacity creation. 18,000 kilometers of doubling, third and fourth line works and 5,000 kilometers of gauge conversion would eliminate capacity constraints and transform almost entire network into Broad Gauge,” Jaitley, in his Budget speech for FY 2019, said.

Work on Eastern and Western dedicated Freight Corridors is in full swing. Adequate number of rolling stock – 12,000 wagons, 5,160 coaches and approximately 700 locomotives are being procured during 2018-19. A major programme has been initiated to strengthen infrastructure at the Goods sheds and fast track commissioning of private sidings, the finance minister said.

 


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