Rail stocks gather pace, surge up to 12 pc

Rail stocks today surged up to 12 per cent after the Cabinet approved setting up an independent rail regulatory authority to determine tariffs and frame other necessary guidelines.
Shares of Stone India soared 12.09 per cent, Kernex Microsystems rose by 4.97 per cent and Texmaco Rail & Engineering gained 1.15 per cent on BSE.
Considered to be the biggest and first-of-its-kind reform in the rail sector, setting up of Rail Development Authority (RDA) is meant to improve the services offered to passengers, provide comfort to investors and enhance transparency and accountability.
The RDA will be formed through an executive order of the government, according to the Cabinet decision.

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.