Shares of KEC International Ltd., Siemens Ltd., RVNL, and Kalpataru Projects declined on Saturday after Finance Minister Nirmala Sitharaman announced a lower allocation in railway capital expenditure.
During her budget speech, Sitharaman announced an allocation worth Rs 2.554 lakh crore for the Ministry of Railways for the next fiscal, just a 0.020% increase in allocation compared to Rs 2.553 lakh crore last fiscal.
India has been investing heavily in expanding the rail network, adding both passenger and freight capacity at a rapid pace. The capex has led to strong business growth and visibility for companies operating in the space.
In the last budget, the government allocated a record capex of Rs 2.62 lakh crore for railways. The amount has steadily increased over the last 10 years, from Rs 28,174 crore in 2013-14.
The last two years had seen railway stocks surge, but they tapered off recently amid a broader market correction.
RVNL stock declined the most, falling 9.47% to the day's low of Rs 431.50 apiece. It was trading 9.25% lower at Rs 433.20 apiece as of 3:15 p.m.
Siemens Ltd. shares fell 6.97% to the day's low of Rs 5,650 apiece. It was trading 5.39% lower at Rs 5,746 apiece as of 3:15 p.m.
Kalpataru Projects Ltd. slumped 4.36% to the day's low of Rs 1,012.50 apiece. It was trading 3.12% lower at Rs 1,026 apiece.
KEC International Ltd. declined 2.24% to Rs 822 apiece. It was trading 1.75% lower at Rs 825.05 apiece around 3:15 p.m.
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