Rail stocks in demand

Shares of 13 companies whose fortunes are linked to orders from Indian Railways rose by 0.70% to 5.96% at 14:00 IST on BSE on media reports that China is all set to pledge investments worth billions of dollars into India's rail network.

Stone India (up 5.96%), Kernex Microsystems (India) (up 4.95%), Kalindee Rail Nirman (Engineers) (up 3.72%), BEML (up 3.23%), Bharat Heavy Electricals (up 2.81%), Titagarh Wagons (up 2.79%), Hind Rectifiers (up 2.79%), Simplex Castings (up 2.65%), Nelco (up 2.49%), Texmaco Rail and Engineering (up 2.45%), Transformers & Rectifiers (India) (up 2.43%), Zicom Electronic Security Systems (up 1.67%) and Container Corporation of India (up 0.70%), edged higher.

The S&P BSE Sensex was up 444.71 points, or 1.67% at 27,076.

According to reports, the Indian Railways will get assistance from its counterpart in China for semi-high speed corridors, which allow trains to run at a speed of up to 200 km per hour. Upgrading technical skills and station redevelopment projects are two other areas wherein the two countries will collaborate. A comprehensive agreement is going to be signed between the two countries Thursday, 18 September 2014, reports suggested.

The development comes close on the heels of a Japanese pledge to invest $35 billion in India over the next 5 years. Among other things, Japan will work on introducing bullet trains, apart from deepening security ties, as decided during talks held between the two Premiers in Tokyo earlier this month.

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