Rail Budget 2013-14: Train travel may cost more with passenger amenities cess

Rail Budget 2013-14: Train travel may cost more with passenger amenities cess

Train travel is expected to get costlier, said sources a day ahead of the Rail Budget 2013. According to sources, the government is likely to introduce a fuel adjustment component and a passenger amenities cess which will contribute to a hike in fares.

Train travel is expected to get costlier, said sources a day ahead of the Rail Budget 2013 . According to sources, the government is likely to introduce a fuel adjustment component and a passenger amenities cess which will contribute to a hike in fares. The Rail Budget 2013 may not be as populist as the people expect it to be.


The Rail Budget 2013 will be the the first by a Congress minister in 17 years and is likely to pinch you a bit more.

However, there is good news in the offing. Sources say that an additional Rajdhani is likely to be introduced between Delhi and Mumbai. Two are already running between the two destinations.

Also, several railway works could come under the MNREGA, the flagship programme of the UPA which would widen the programme's scope. Reportedly, Rural Development Minister Jairam Ramesh has accepted this proposal of the Railway Ministry.

Trinamool Congress, however, is not pleased. TMC leader Saugata Roy said, "We oppose the 20 per cent hike introduced last time. Future price hike is opposed."

Source: Money Control

Railway Budget 2013 : Six stocks to watch out ahead of Railway Budget 2013-14

Railway Budget 2013 : Six stocks to watch out ahead of Railway Budget 2013-14

The Railway Budget is generally viewed as a precursor to the Union Budget 2013-14, due later this week. Railway minister Pawan Kumar Bansal will present the Railway Budget on Tuesday, February 26.

The curiosity about the upcoming Railway Budget with the budget announcement for 2013 - 2014 is obvious as the Indian Railways sprawls a huge network of rail tracks throughout the country.

"The condition of the railway department has been deteriorating day by day. The Indian Railways, which carries over 25 million passengers daily, has witnessed total earnings growth 20.4 per cent during the period between April2012-January201 compared to a growth of 27.6 per cent which was projected in the Budget estimates," said D.K. Aggarwal, CMD-SMC Investments & Advisors Ltd.

In the year 2012, Indian Railways hiked passenger fares by 21 per cent to curb the mounting losses. The hike in the fare has helped mop up additional revenue of Rs 6,600 crore in a year. However, the diesel price hike of Rs 10.8 per litre has put additional burden of Rs 3,300 crore annually.

"After raising the railway fares in January, the Railway Ministry is mulling another round of fare hike in the upcoming Rail Budget 2013-14. It is expecting a good chunk of helping hand from the government in this Budget," added Aggarwal.

Aggarwal is of the view that stocks like Titagarh wagons, Kalindee Rail, Bharat Earth Movers and Texmaco generally get attraction before the announcements of the Rail Budget as these are the companies that generally get benefited by the capital spending of the Railways.

We have compiled technical views on top six stocks which are likely to move on and after the Railway Budget day:

Ranajit Kumar Saha, Senior Manager- Technical Research at Microsec Capital Ltd

BEML:

After making a low of Rs 235 on 15th February, 2013, the BEML has given a pullback rally of almost 7.6 per cent in last five successive trading sessions. Now the stock is likely to face a stiff resistance at Rs 271.

If the stock is able to maintain above this level, an upward rally might carry it to Rs 330 in the extreme short term. We recommend initiating long positions on the stock with a stop loss at Rs 210.

Titagarh Wagons Ltd:

Titagarh Wagons Ltd (TWL) is in continuous downtrend since the last two years. The immediate crucial support of the stock is at Rs 250 and a breach of this level is likely to take the stock lower to Rs 210 and then Rs 185. We recommend holding long positions in the stock with strict stop loss of Rs 250.

Texmaco Rail & Engineering Ltd:

The short-term crucial support of TEXRAIL is at Rs 58, near 200 DMA. If the stock breaches this level, the short term trend would become negative and the stock may further go down to Rs 50. We recommend holding long positions in the stock with stop loss of Rs 50.

Source: ET