Railway stocks in demand on FDI hope

MUMBAI: Rail stocks surged as much as 20 per cent amid a media report that the government may allow foreign direct investment ( FDI) in the sector.

Shares of Kalindee Rail Nirman Engineers zoomed 20 per cent, while Kernex Microsystems India soared by 18.29 per cent on the BSE.

Among others, Texmaco Rail & Engineering surged 12.61 per cent and Titagarh Wagons jumped 9.99 per cent.

"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.