Sensex tumbles 235 pts on hike in freight rates
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The BSE benchmark Sensex tumbled 235 points in mid-session trade today as selling pressure gathered momentum after a proposed freight hike in the railway budget.
After a lower start, the Sensex surrendered further ground to trade 234.72 points, or 1.21 per cent down to 19,096.70 at 1330 hrs.
Similarly, the broad-based National Stock Exchange index Nifty lost 70.95 points, or 1.21 per cent, to 5,783.80 at the same time.
The government proposed a hike of five per cent freight rate in the rail budget which might increased burden on the corporate earnings.
Share prices of companies that cater to the railway sector were under pressure and tanked up to 8 per cent as Railway Minister Pawan Kumar Bansal delivered his maiden Rail Budget in the Lok Sabha.
Brokers said there was no benefit announced for the railway wagon makers which dampened the sentiment further.
Kalindee Rail Nirman was the largest loser and dropped 8.10 per cent on the BSE, followed by Hind Rectifiers which dropped 6.71 per cent and Kernex Microsystems which fell by 6.42 per cent.
Among others, Stone India tanked 6.53 per cent, Titagarh Wagons was down 5.65 per cent, Texmaco Rail (down 4.87 per cent), Zicom Security (down 3.60 per cent) and BEML (down 2.17 per cent).