Rail Budget 2015: Freight rate hike shoots down cement stocks

The Railway Budget 2015 saw the common man enjoy after the railway minister Suresh Prabhu announced that the fare rate would not see a hike, apart from various other facilities. However, the increase of freight rates saw the stock market fluctuating for some. The cement stocks saw a dip in trading by an average of around 5 percent. Star Ferro and Cement Ltd was seen trading at losses of 4.66 percent.

Freight rates for cement have shot up by 2.7 percent, as announced by the railway minister during the Railway Budget 2015. Freight rates for Iron, steel and coal have also been increased. The coal freight rate price increase will also affect the cement making costs. However, the market is expecting that the Union Budget 2015 will ease out the issues for the cement sector.