Rail-linked stocks gain on Cabinet nod to Rail Development Authority

Texmaco Rail,Titagarh Wagons, Kernex Microsystems, BEML and Stone India rallied up to 19% on BSE.

Shares of railway related companies such as Texmaco Rail & Engineering, Titagarh Wagons, Kernex Microsystems, BEML and Stone India rallied up to 19% on the BSE in intra-day trade after the government approved setting up of Rail Development Authority.

“The Cabinet on Wednesday approved the formation of an independent rail regulatory authority (RDA) to determine tariffs ensuring fair play and level playing field for private players keen on investment in the railways,” the PTI report suggests. CLICK HERE TO READ FULL REPORT

RDA will help the government to take appropriate decisions on pricing of services commensurate with costs, suggest measures for enhancement of non-fare revenue, protection of consumer interests, promote competition, encourage market development and create positive environment for investment, added report.

Among the individual stocks, Stone India surged 19% to Rs 81.90 on BSE on the back of an over 10-fold jump in trading volumes.

Stone India is a pioneer in brake systems and train lighting alternators and today is the undisputed leader in locomotive brake system and has a wide range of mechanical and engineering products for the rail road industry.

Kernex Microsystems (India) is locked in upper circuit of 5% at Rs 47.55, also its 52-week high on the BSE. The company engaged in railway products technologies like collision preventing systems, automated level crossing systems, electronic Inter-locking and multi section digital axle counters offer.

Company	05/04/2017	LTP	% chg
Stone India	69.05	79.05	14.5
Kernex Microsys.	45.30	47.55	5.0
Texmaco Rail	99.85	102.55	2.7
BEML Ltd	1362.80	1383.00	1.5
Titagarh Wagons	121.60	123.00	1.2
Sensex	29974.24	29898.66	-0.3
LTP : Last traded price on BSE in Rs at 09:36 am