Railways Vote on Account 2014: Rail stocks gain ahead of budget, Titagarh Wagons up 2%

MUMBAI: Rail stocks gained momentum ahead of the Railway Minister Mallikarjun Kharge presenting the interim Rail Budget later in the day.

In the interim budget, generally no major new projects or policy matters are announced.

According to reports, the minister is likely to announce some new trains, extension and increase of certain train services, while keeping fare same for the passenger segment.

Anti-fire measures in trains, installations of upgraded real-time train information system, track electrification of 1600 km to curtail fuel costs are expected from the vote-on-account statement.

According to reports, the railway minister may report a growth-oriented budget and not a deficit one despite fall in earnings.

There might be proposal to allow foreign companies to pick up 100 per cent stake in Special Purpose Vehicles to construct, maintain and connect rail lines from ports, industrial hubs to existing network.

The Union Cabinet is likely to open railway sector to foreign investment, as the Home Ministry has accorded an in-principle nod to FDI in the sector.

At present, there is a complete ban on FDI in the railways except for the mass rapid transport systems.

At 10:15 a.m.; Titagarh Wagons was up 2.04 per cent, Kernex Microsystems gained 1.75 per cent, BEML moved up 1.01 per cent, Kalindee Rail Nirman advanced 1.73 per cent and Hind Rectifiers was 2.41 per cent lower.