Railway Minister Suresh Prabhu's maiden budget failed to garner investor confidence, as a majority of stocks associated with the railways plunged in Thursday's trade session.
The minister proposed to correct the railway's investment deficit position and outlined a slew of initiatives for generating financial resources like tying up with pension funds and other debt-related instruments.
Prabhu also proposed various plans to increase investment, erect new rail infrastructure, ration energy consumption and spruce up passenger amenities.
TRACK THE LATEST:Railway Budget 2015
"The markets have likely been disappointed by the absence of several big announcements relating to the dedicated freight corridors or other capex programs as well as finer details on foreign direct investment and public private partnership financing," said Dipen Shah, head - private client group research at Kotak Securities.
"However, the focus on effective implementation, improving the operating ratio as well as on new initiatives bodes well for the railways in the long term."
Stocks of companies like Texmaco Rail and Engineering, Container Corporation of India, Kalindee Rail Nirman (Engineers), Stone India and Cimmco ended the day's trade in the red.
However, the stocks of Hind Rectifiers, Titagarh Wagons, Kernex Microsystems and Transformers and Rectifiers (India) made gains during the day's trade.
At the Bombay Stock Exchange (BSE), shares of wagon-maker Texmaco Rail and Engineering closed the day's trade down 2.51 percent at Rs 135.70 from the previous close of Rs 139.20.
The scrip of Container Corporation of India was lower by 3.47 per cent at Rs.1,518.95 from the previous close of Rs 1,573.60.
Stocks of Kalindee Rail Nirman (Engineers) decreased 4.05 per cent at Rs 135.10, moving down from its previous close of Rs 140.80.
The scrip of another company associated with the railways, Stone India, ended the day's trade lower by 6.07 per cent at Rs 79.70 from its previous day's close of Rs 84.85 per equity share.
Shares of Cimmco were down 6.67 per cent at Rs 71.40 from its previous close of Rs 76.50.
However, the stocks of Hind Rectifiers were up 14.71 percent at Rs.89.30 from the previous close of Rs.77.85.
Wagon manufacturer Titagarh Wagons's scrip made marginal gains. It was up 0.50 percent at Rs.582.10 from its previous close of Rs.579.20.
FULL COVERAGE:Union Budget 2015
The scrip of Transformers and Rectifiers (India) at the BSE was up 2.90 percent at Rs.191.90 from its previous day's close of Rs.186.50 per equity share.
Kernex Microsystems's stocks closed 0.32 percent up in the day's trade at Rs.46.70 per equity share.
Cement stocks witnessed a knee-jerk reaction after the rail budget announcement of hike in freight rates for cement by an average of 2.7 percent.
Other market analysts said that higher level profit booking was witnessed in the markets as the investors cautiously rolled over their positions ahead of the economic survey and the union budget.
"Today, market was impacted from expiry and the Railway budget. Railway budget was expected to provide guidance on the upcoming Union budget. Railway budget has proposed for some near term costs to bring long term benefits," said Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services.