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Rail stocks in demand on FDI buzz

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Capital Market
Last Updated : Dec 30 2013 | 11:55 PM IST

Nine rail stocks rose by 0.34% to 6.67% at 10:38 IST on BSE on reports the government is likely to allow foreign direct investment in railways.

Kalindee Rail Nirman (Engineers) (up 6.67%), Titagarh Wagons (up 5.14%), Kernex Microsystems (India) (up 4.15%), Hind Rectifiers (up 3.32%), NELCO (up 2.44%), Texmaco Infrastructure & Holdings (up 1.14%), Transformers & Rectifiers (India) (up 1%), BEML (up 0.56%) and Container Corporation of India (up 0.34%), edged higher.

The BSE Sensex was down 30.34 points, or 0.14% at 21,163.24.

According to media reports, the Cabinet Committee on Economic Affairs (CCEA) is likely to approve a proposal on foreign direct investment (FDI) in railways early next month.

The original proposal had mooted 100% FDI in the railways, but this cap could be lowered to 74% in some areas. Also, foreign money would be allowed only in construction and maintenance of railway projects, and not in operations, reports added.

At present, FDI is not allowed in railway segments other than mass rapid transport and component manufacturing.

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First Published: Dec 30 2013 | 10:36 AM IST

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