Shares of 10 companies whose fortunes are linked to orders from Indian Railways rose by 0.22% to 5% at 11:47 IST on BSE on reports the government is moving swiftly to allow foreign direct investment in railways.
Simplex Casting (up 5%), Stone India (up 4.91%), Kalindee Rail Nirman (Engineers) (up 4.26%), Texmaco (up 3.79%), Texmaco Infrastructure & Holdings (up 3.56%), Kernex Microsystems (India) (up 2.18%), BEML (up 1.87%), Bharat Heavy Electricals (up 1.76%), Hind Rectifiers (up 1.56%) and Container Corporation of India (up 0.22%), edged higher.
The S&P BSE Sensex was up 10.29 points, or 0.04% at 25,256.54.
The commerce and industry ministry has initiated the exercise to allow 100% foreign direct investment (FDI) in several segments of railways, moving beyond its earlier plan to open select sectors such as high-speed train systems, dedicated freight lines built through the public-private partnership route and in certain areas of suburban rail networks. Currently, there is a complete ban on any kind of FDI in railways, except mass rapid transport systems.
Commerce and industry minister Nirmala Sitharaman was quoted by media as saying that the government is discussing FDI in railways. The government is keen to get money in railways, she said, adding reforms in railways are a very big business.
High-speed trains and dedicated corridors are top agenda items for the BJP government and the intention to upgrade infrastructure was officially announced by president Pranab Mukherjee in his address to the joint sitting of both Houses of Parliament, reports suggest.
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