No jerks, no steam: Rail budget a non-event for markets

Mumbai, Feb 24 (PTI)A lacklustre rail budget snapped the
two-day gains of the BSE barometer Sensex which shed 30 points
Wednesday as investors remained cautious ahead of the Budget.

Amid weak global advices, Sensex opened nearly 100 points
down and continued to remain range bound as wary operators
remained cautious ahead of the expiry of February contracts
tomorrow and the Budget day after.
Finally the 30-issue bellwether closed 30.35 points or
0.19 per cent down at 16,255.97 after touching a high of
16,328.44 and a low 16,187.44. The Sensex had shot up 254.56
points or 1.74 per cent on the previous rail budget day.
The wide-based NSE Nifty also lost 11.45 points to
4,858.60, after moving between 4,880.55 and 4,834.65.
India's Railway minister Mamata Banerjee kept passenger
fares and freight rates unchanged but reduced freight rate for
kerosene foodgrain, and fertiliser, which will bring down
inflation.
Though Mamata ruled out privatisation,she invited private
investment in railways and promised to clear such proposals
within 100 days. However, the market was upset as she did not
increase waggon order rate, which fuelled concern that the
Budget may rollback stimulus measures, and thus arrested the
rally in the rail-related stocks.
Angel Broking chairman Dinesh Thakkar said, "the railway
budget is a non-event from the market perspective even though
it is overall positive in its intent and future direction. The
budget is devoid of any major populist measures and focused on
developing and improving rail infrastructure, including
inviting investments through public-private-partnerships."
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