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Live Market Updates: Sensex plunges 300 pts post Railway freight rate hike

13:00

The News International Team
Live Market Commentary

01:57pm Under five-year plan, Railway will invest Rs 1.99 lakh crore on network decongestion.

Suresh Prabhu expects 16.7 percent growth in FY16 passenger earnings. “FY16 gross traffic receipts are pegged at Rs 1.84 lakh crore,” he says.

“We proposed market borrowing of Rs 17,655 crore for FY16 and cashflows to fund Rs 17,739 crore in FY16 spending,” he adds.

01:50pm Freight rate for grains is raised by 10 percent while the rate is lowered by 0.3 percent for limestone & manganese.

Railway Minister Suresh Prabhu expects FY16 freight earnings to be Rs 1.21 lakh crore against Rs 1.06 lakh crore in FY15. “FY16 gross budgetary support from central government is pegged at Rs 40,000 crore,” he adds.

01:45pm Market Update: The market fell further with the Sensex losing 309.76 points or 1.07 percent to 28698.23. The Nifty broke 8700-mark, down 92.95 points or 1.06 percent to 8674.30.

Declining shares outnumbered advancing ones by a ratio of 2 to 1 on the Bombay Stock Exchange.
 
BHEL, Hindalco Industries, Sun Pharma, Infosys, Bajaj Auto and Bank of Baroda plunged 2-4 percent.

01:37pm Railway Minister has raised freight rate for several sectors like cement, coal & iron & steel, oil etc. Suresh Prabhu has raised freight rate by 3.1 percent for scrap & pig iron, 2.7 percent for slag, 0.8 percent for kerosene and 0.8 percent for LPG.

Freight rate is also hiked for cement by 2.7 percent, 0.8 percent for iron & steel, 10 percent for urea and 6.3 percent for coal. However, freight rate is lowered by 1 percent for high-speed diesel (HSD).

01:33pm Supreme Court has restrained government from finalising spectrum auction proceedings. According to court, spectrum auctions will be subject to court orders.

01:30pm Railway Minister Suresh Prabhu says he expects 16.7 percent growth in FY16 passenger earnings. “FY16 gross traffic receipts are pegged at Rs 1.84 lakh crore,” he adds.

01:28pm Enam Securities chairman Vallabh Bhanshali feels this Railway Budget is a transformational budget in long-term.

“Rail Minister Suresh Prabhu laid out plan to decentralise decision-making. There is a lot of transparency in this Railway Budget,” he says.

01:22pm Suresh Prabhu says, “We proposed market borrowing of Rs 17,655 crore for FY16 and proposed cashflows to fund Rs 17,739 crore in FY16 spending. FY16 gross budgetary support from government pegged at Rs 40,000 crore.”

01:18pm “There is no increase in passenger fares,” says Suresh Prabhu, adding he envisages Rs 8.5 lakh crore investment over 5 years in Railways.

He proposed operating ratio of 88.5 percent for FY16 versus 91.8 percent FY15. “We will increase track capacity by 14 percent to 138,000 km.”

01:15pm Railway Minister Suresh Prabhu will revamp PPP model in railways. “We will to undertake digitisation of rail land records,” he adds.

Railway will increase annual passenger capacity to 30 million from 21 million and will increase annual freight capacity to 1.5 billion tonne from 1 billion and will increase track capacity by 14 percent to 138,000 km,” says Prabhu.

01:10pm Railway will set up infra fund and holding company to raise long-term debt. “Plan Budget goes up 52 percent to Rs 1.11 lakh crore for FY16,” Prabhu says.

“Railway proposed to launch Rs 2,500 crore of projects via BOT. 1,000 MW of solar plants will be set up on railway/private land,” he adds.

01:05pm Railway will monetise assets rather than sell them. “We will raise funds from pension, insurance and multilateral agencies. We will set up financing cell in railway board,” Prabhu says.

01:00pm Market Check

The market extended losses in afternoon trade amid Railway Budget speech. The Sensex fell 209.75 points to 28798.24 and the Nifty declined 50.20 points to 8717.05.

The market breadth is weak as about 946 shares have advanced and 1586 shares declined on the Bombay Stock Exchange.

Railway Minister, Suresh Prabhu says there is no increase in passenger fares. He envisages Rs 8.5 lakh crore investment over five years.

Prabhu proposed operating ratio of 88.5 percent for FY16 against 91.8 percent FY15. He says 10 stations will be taken up for satellite stations. “We will to spend Rs 96,182 crore on capacity expansion in FY16. We are committed to providing rail connectivity to north east,” he adds.

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