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Rail stocks today surged as much as 20% amid a media report that the government may allow foreign direct investment (FDI) in the sector.
Shares of Kalindee Rail Nirman Engineers today zoomed 20%, while Kernex Microsystems India soared by 18.29% on the BSE.
Among others, Texmaco Rail & Engineering surged 12.61% and Titagarh Wagons jumped 9.99%.
"These stock moved up sharply amid rumours of FDI in railway sector," said Kishor Ostwal, CMD, CNI Research.
Echoing similar views, Gajendra Nagpal, CEO & Founder , Augment Financial Services said, "Government may allow FDI in railways this led to huge buying in rail stocks."
As per a media report, the Cabinet Committee on Economic Affairs (CCEA) is likely to approve a proposal on this, early next month.
At present, FDI is not allowed in railway segments other than mass rapid transport and component manufacturing, it said.
Meanwhile, the broader market was weak with the benchmark Sensex losing 50.57 points to settle at 21,143.01.
