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Stocks of companies associated with the railways have rallied by up to 11% in early morning deals on the bourses after the Union Cabinet on Wednesday cleared the proposal to allow 100% foreign direct investment (FDI) in railway infrastructure.
Shares of wagon maker Texmaco Rail and Engineering has rallied 11% to 101 on the Bombay Stock Exchange (BSE).
Kalindee Rail Nirman (Rs 96.65), Titagarh Wagons (Rs 245.55), Hind Rectifiers (Rs 47.80) and Kernex Microsystems (Rs 56.15) have frozen at upper circuit of 5%, while BEML was up 4% at Rs 715 on BSE.
The Cabinet headed by Prime Minister Narendra Modi approved a proposal to open up cash-strapped railways to foreign investment by allowing 100% FDI in areas such as high-speed train systems, suburban corridors and dedicated freight line projects implemented in PPP mode, the PTI Report suggests.
The FDI liberalisation in the sector would help in modernisation and expansion of the railway projects. However, FDI will not be allowed in train operations and safety.
Shares of wagon maker Texmaco Rail and Engineering has rallied 11% to 101 on the Bombay Stock Exchange (BSE).
Kalindee Rail Nirman (Rs 96.65), Titagarh Wagons (Rs 245.55), Hind Rectifiers (Rs 47.80) and Kernex Microsystems (Rs 56.15) have frozen at upper circuit of 5%, while BEML was up 4% at Rs 715 on BSE.
The Cabinet headed by Prime Minister Narendra Modi approved a proposal to open up cash-strapped railways to foreign investment by allowing 100% FDI in areas such as high-speed train systems, suburban corridors and dedicated freight line projects implemented in PPP mode, the PTI Report suggests.
The FDI liberalisation in the sector would help in modernisation and expansion of the railway projects. However, FDI will not be allowed in train operations and safety.
