Stock Market associated with Railway industry in focus; trading higher

Kernex Microsystems, Kalindee Rail, Titagarh Wagons, Texmaco Rail and Hind Rectifiers are up by 7-17% on BSE

Stocks of companies associated with the railways are trading higher by up to 17% in noon deals on media reports that the government is likely to take up new norms for liberalising the foreign direct investment (FDI) regime in railways.

Kernex Microsystems (India), Kalindee Rail Nirman (Engineers), Titagarh Wagons, Texmaco Rail and Engineering and Hind Rectifiers are up 7-17% on the Bombay Stock Exchange (BSE).

“The Union Cabinet should be taking up the matter in its next meeting or the one after. All issues raised by the Home Ministry on security aspects have been addressed,” a Business Line report suggest quoting a senior official of the Department of Industrial Policy & Promotion (DIPP).

The DIPP has proposed 100% FDI through automatic route in the cash-strapped railways sector. It has been proposed that foreign investment be allowed in suburban corridor, high-speed train systems and dedicated freight line projects implemented in the PPP (public private partnership) mode.

But, FDI will not be allowed in areas related to train operations and safety.

Among the individual stocks, Kernex Microsystems (India) has surged nearly 17% at Rs.33.80 on BSE. Kalindee Rail Nirman (Engineers) and Titagarh Wagons are up 10% each at Rs.56.20m and Rs.103 respectively, while Texmaco Rail and Engineering up 7.4% at Rs.41.95.