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Business News/ Money / Rail budget drives steel, cement, software, oil and logistics stocks
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Rail budget drives steel, cement, software, oil and logistics stocks


Rail budget drives steel, cement, software, oil and logistics stocks

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Mumbai: Lalu Prasad’s fifth railway budget, which focussed on upgrading infrastructure and technology, helped stocks in diverse sectors such as steel, software, cement, oil and logistics to rise on Tuesday.

The Bombay Stock Exchange’s benchmark index, the Sensex, extended Monday’s gains, continuing its pre-budget rally to close on Tuesday at 17,806.19 points, a gain of 0.88% or 155 points.

“It was populist budget," said Manish Sonthali, vice-president, equities, at publicly traded retail brokerage house Motilal Oswal Securities Ltd.

Hindustan Rectifiers Ltd, which manufactures AC electrical multiple units, was the biggest gainer, with a 11.2% gain. Steel and mineral stocks were lifted by a cut in freight rates by 4-5%. State-owned Steel Authority of India Ltd rose 2.5%, while Jindal Stainless Steel Ltd, up 7.1%, was the biggest gainer among steel stocks. National Aluminium Co. Ltd also gained 7.3%.

A 5% cut in freight rates for petrol and diesel proped up oil stocks. Indian Oil Corp. gained 4.17% to Rs550.90, while Bharat Petroleum Corp. Ltd was up 5.3% and Hindustan Petroleum Corp. Ltd 4.7%.

Heavy-engineering stocks such as Patel Engineering Ltd, which manufactures railway-track related components, were benefited by the announcement on railways’ expansion plans. Electrical engineering firm Siemens Ltd posted a marginal gain of 0.76%.

Gateway Distriparks Ltd and Container Corp. of India Ltd gained on the public-private partnership initiatives announced by the minister. Gateway stock gained 6.2%.

Large-cap software stocks such as Wipro Ltd and Infosys Technologies Ltd moved up sharply. Infosys gained more than 3%, while Wipro closed with a 1% gain.

A host of stocks related to wagons and railway equipments manufacturing companies also gained on positive developments.

Kernex Microsystems Ltd, which manufactures anti-collision devices, gained 4.9% to Rs219.35, while MIC Electronics, the maker of display machines, vaulted more than 7% on expectation of potential orders from the railways.

Among cement makers, Binani Cements Ltd and Grasim Industries Ltd were the biggest gainers—both up more than 5%. Among other cement stocks, India Cements Ltd gained 4.77%, while Andhra Cements added 3.41%. The stocks gained on the budget announcement about new bulk handling facilities for cement transportation.

Stocks related to railway infrastructure, such as Integra Hindustan Control Ltd and wagon maker Texmaco Ltd, also gained. Integra closed at Rs215 up 1.8%, while Texmaco ended the day at Rs1,612 with 1.58% gains.

However, firms such as Kalindee Rail Nirman (Engineers) Ltd and Amtek Auto Ltd, both manufacturers of railway components, gained during intra-day trade on Tuesday but closed with losses.

Stone India Ltd, a multi-product engineering company that caters to the railways, gained significantly, adding 3.6% on Tuesday.

Shares of state-owned Bharat Earth Movers Ltd gained more than 3% on merit of its rail coach and diesel engine manufacturing business.

nesil.s@livemint.com

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Published: 26 Feb 2008, 10:15 PM IST
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