Analysts give mixed reaction to Rail Budget 2013, E&Y, Nomura tag it 'run of mill'
However, he warned that the increase in freight rates which would be linked with the diesel price movements could add to inflation.
On the sharp decline in stock markets, he said "the market did not react positively for two reasons. The first is that it was expected to be an innovative budget that would give direction to specific industries, which has not materialised.
"Second, the potential increase in freight rates would hike not just the cost of transport of railway traffic, but also add to inflation."