Rail stocks surge up to 5% on hopes of FDI

MUMBAI: Shares of companies related to railways today gained as much as 5 per cent following reports that the Commerce and Industry ministry has started the exercise to relax foreign investment norms in the sector by permitting 100 per cent FDI.

Kalindee Rail Nirman surged 4.98 per cent, while Stone India rose by 4.91 per cent and Kernex Microsystems India was up 1.32 per cent on the BSE.

After defence, the Commerce and Industry ministry has started the exercise to relax foreign investment norms in the railways sector by permitting 100 per cent FDI in high-speed train systems and dedicated freight lines.

The Department of Industrial Policy and Promotion ( DIPP) under the Commerce and Industry Ministry has circulated a draft cabinet note on the matter for inter-ministerial consultation, sources said yesterday.

At present, there is a complete ban on any kind of FDI in the railways sector except mass rapid transport systems.