Railway stocks see mixed reaction

Shares of seven companies operating in the railways-related sector saw mixed trend at 11:56 IST on BSE after Finance Minister allowed larger participation of private sector through public-private partnerships in passenger and freight services.

Meanwhile, the S&P BSE Sensex was down by 112.46 points, or 0.28% to 39,795.60.

Railway stocks saw mixed trend. Container Corporation of India (up 0.33%), BEML (up 0.22%) and NELCO (up 0.17%) rose. Hind Rectifiers (down 1.93%), Texmaco Rail & Engineering (down 1.24%) and Titagarh Wagons (down 0.24%) declined.

While presenting Union Budget 2019-20 in parliament today, 5 July 2019, Finance Minister Nirmala Sitharaman said that the Indian Railways is set to allow larger participation of the private sector through public-private partnerships (PPPs) in passenger and freight services.

The railway infrastructure needs investment of Rs 50 lakh crore between 2018 and 2030. PPPs will unleash development in the railways sector, the Finance Minister said. The development targets of the Indian railways cannot be met by the public sector alone, calling for larger participation of the private sector, Nirmala Sitharaman said. The ministry also called for allowing private players to operate passenger trains on important routes in the country and open up rolling stock manufacturing to the private sector, she added.

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