Sensex crashes 518 points as Rail Budget fails to live up to market expectations …

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The Sensex tanked 518 points on the back of profit-booking after sustained rally in the last few trading sessions. The Sensex hit one-week low. There was all-round selling as the Railway Budget failed to cheer investors. Realty, power, capital goods and consumer durables stocks took major beating.

Brokers said weak global cues also dampened the domestic sentiment. The benchmark index opened on a positive note at 26,167 against the previous close of 26,100. It made a high of 26,190 and low of 25,495 before closing at 25,582. Turnover on the exchange was up marginally at Rs 4,293 crore against Rs 4,205 crore recorded on Monday.

On the NSE, the Nifty was down 164 points at 7,623. Shares of most companies related to the railways dipped after Railway Minister, D V Sadananda Gowda, proposed Foreign Direct Investment in Railways after seeking the Cabinet approval.

Some of these companies have rallied sharply on expectation of sops in the Railway Budget. The Railway Budget listed out its proposals which include prioritising the completion of the ongoing projects, proposal to mobilise resources through surplus of Railway PSUs, FDI and Public Private Partnership and periodic revision in passenger fare and freight rates which is linked to revision in fuel pricing. There was no change in passenger fares and freight rates in the Rail Budget as it was increased last month.

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