Railway stocks surge on FDI hopes

Mumbai: Stocks of wagon and railway infrastructure builders gained in Mumbai on Monday on reports that the government could allow foreign direct investment (FDI) in the country’s railway sector, citing an unnamed senior government official.

The report said the FDI limits could vary by specific area, adding the proposal has been prepared by the commerce ministry and sent for approval to the Cabinet, which could consider it either on 2 January or 9 January.

India has been contemplating opening up investments in railway infrastructure to foreign players in a bid to attract foreign funds to finance its ailing infrastructure.

Kalindee Rail Nirman Engineers Ltd rose 20% to close at ₹ 79.20, Titagarh Wagons Ltd gained 9.99%, Texmaco Rail and Engineering Ltd rose 12.61%, while Hind Rectifiers Ltd climbed 12.63%. The benchmark Sensex lost 0.24% to close at 21,143.01 points on Monday.