Shares of nine companies whose business is related to railways surged by 1.22% to 11.6% at 09:36 IST on BSE, after the Cabinet on Wednesday, 6 August 2014 reportedly approved up to 100% foreign direct investment in railway infrastructure.
Texmaco Rail and Engineering (up 11.6%), BEML (up 3.51%), Titagarh Wagons (up 4.98%), Kalindee Rail Nirman (Engineers) (up 5%), Kernex Microsystems (India) (up 4.95%), Stone India (up 4.88%), Hind Rectifiers (up 4.94%), Container Corporation of India (up 2.04%) and Bharat Heavy Electricals (up 1.22%) edged higher.
Meanwhile, the S&P BSE Sensex was down 56.29 points, or 0.22% at 25,608.98
The Union cabinet on Wednesday, 6 August 2014 reportedly approved up to 100% foreign direct investment (FDI) in railway infrastructure through automatic route. FDI channelled through the automatic route doesn't require prior government approvals.
A note circulated by the commerce and industry ministries had reportedly proposed FDI in high-speed train systems, suburban corridors and freight lines connecting ports, mines and power installations. However, FDI will not be permitted in railway operations, the report added. At present, there is a complete ban on any kind of FDI, except in mass rapid transport systems.
Railway minister Sadananda Gowda had said in his speech during the railway budget presented on 8 July 2014 that the government was keen to attract FDI to the railways.
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