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Railway stocks in demand on FDI hope

Kalindee Rail Nirman, Titagarh Wagons, Texmaco Rail and Kernax Microsystems are up 3-7% on the BSE.

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SI Reporter Mumbai
Last Updated : Dec 30 2013 | 10:53 AM IST
Railway stocks are on a firm track today and trading up to 7% higher on reports that the government may allow foreign direct investment (FDI) in the sector.

Kalindee Rail Nirman, Titagarh Wagons, Texmaco Rail and Engineers, Hind Rectifiers, Kernax Microsystems and Stone India are up between 3-7% on the Bombay Stock Exchange (BSE).

The Cabinet Committee on Economic Affairs (CCEA) is likely to approve a proposal on this, albeit slightly watered down, early next month, according to a Business Standard report.

The 100% FDI limit proposed by the Department of Industrial Policy & Promotion in its draft has been scaled down to 74% in certain areas of the railways. The foreign money would be allowed only in construction and maintenance of railway projects, and not in operations, added report.

Among the individual stocks Kalindee Rail Nirman has surged 7% to Rs 71, followed by Titagarh Wagons and Kernax Microsystems are up 6% at Rs 110 and Rs 47 respectively.

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First Published: Dec 30 2013 | 10:01 AM IST

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