Mumbai: Rail stocks Thursday ended with as much as 5 percent gains after the government notified liberalised FDI norms for the sector, permitting 100 percent foreign direct investment through automatic route in several areas, including high speed trains.
Shares of Texmaco Rail & Engineering that surged 14.26 percent in intra-day trade trimmed most of the gains and finally ended the day with a gain of 4.80 percent at Rs 79.70 on the BSE.
Stock of Stone India jumped 4.99 percent, while Kalindee Rail Nirman Engineers climbed 4.84 percent and Titagarh Wagons (2.37 percent).
As per the notification yesterday, segments of the Railways in which FDI will be allowed include suburban corridor projects through Public-Private-Partnership, dedicated freight lines, rolling stock including train sets, locomotives/coaches manufacturing and maintenance facilities, railway electrification, signalling systems, freight terminals, passenger terminals and infrastructure in industrial parks like railway line/sidings.
However, proposals involving FDI beyond 49 percent in sensitive areas, from security point of view, will be placed before the Cabinet Committee on Security (CCS) for approval by the Railway Ministry on a case-to-case basis, said a press note of the Department of Industrial Policy and Promotion.
