Rail stocks on Thursday ended with as much as 5 per cent gains after the government notified liberalised FDI norms for the sector, permitting 100 per cent foreign direct investment through automatic route in several areas, including high speed trains.
Shares of Texmaco Rail & Engineering that surged 14.26 per cent in intra-day trade trimmed most of the gains and finally ended the day with a gain of 4.80 per cent at Rs. 79.70 on the BSE.
Stock of Stone India jumped 4.99 per cent, while Kalindee Rail Nirman Engineers climbed 4.84 per cent and Titagarh Wagons (2.37 per cent).
As per the notification on Wednesday, 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 per cent 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.
