Budget 2025: RVNL Shares Slump Over 9%, KEC International, Kalpataru Projects Drag
During her budget speech, Sitharaman announced an allocation worth Rs 2.554 lakh crore for the Ministry of Railways for the next fiscal.
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.
