Rail Budget derails market; Sensex tumbles 261 points

Mumbai, February 26

Indian markets today logged their worst daily drop in two weeks with benchmark Sensex tumbling 261 points to 28,746.65 and Nifty slipping over 83 points to below 8,700-mark after the first full Railway Budget of the Modi government disappointed market participants.

Profit-booking was seen mainly in IT, Healthcare, Capital Goods and Banking shares sectors in view of expiry of futures and options February contract.

Brokers said the Railway Budget was futuristic but lacked details on how Railway Minister Suresh Prabhu will raise the money required for various projects announced today even as passengers were spared of any hike.

Investors also turned cautious as market was abuzz with speculation that the Union Budget to be presented on Saturday will have a populist tilt, they added.

Coal India shares fell after announcement of freight rate hike from April 1, 2015.

Stocks of cement and steel makers also followed suit as participants were unsure of whether companies will be able to fully pass on the hikes in a weak demand scenario, market analysts said.

The BSE Sensex resumed higher at 29,051.90 and moved up to 29,069.13 on initial strong buying. However, it dropped afterwards to 28,693.82 before ending at 28,746.65, showing a loss of 261.34 points of 0.90 per cent.

Similarly, the CNX 50-share Nifty fell by 83.40 points or 0.95% to finish at 8,683.85. — PTI