Rail Stocks in demand after Railway Minister’s announcement on Investment

Rail Stocks in demand after Railway Minister’s announcement on Investment

Mumbai: Shares of eight companies whose fortunes are linked to orders from Indian Railways rose by 0.13% to 2.69% at 15:21 IST after Railway Minister said that Indian Railways needs investment from all possible sources for speedy development of infrastructure.

Meanwhile, the BSE Sensex was up 500.57 points, or 1.77%, to 28,762.58

Texmaco Rail and Engineering (up 1.37%), Kalindee Rail Nirman (Engineers) (up 0.57%), Nelco (up 0.13%), Bharat Heavy Electricals (up 0.18%), Titagarh Wagons (up 0.99%), Zicom Electronic Security Systems (up 2.69%), Stone India (up 2.91%) and Container Corporation of India (up 0.71%) edged higher. BEML (down 1.86%), Kerrnex Microsystems (India) (down 1.99%), Hind Rectifiers (down 1.8%) and Transformers & Rectifiers (India) (down 0.7%) declined.

Minister of Railways Suresh Prabhu said on 19 January 2015 that Indian Railways needs investment from all possible sources for speedy development of the railway infrastructure. Towards this, Indian Railways is exploring to draw investments from new sources such as foreign pension funds and other institutions, Prabhu said at a Seminar on PPP and FDI in Indian Railways organized by the Centre for Transportation Research and Management (CTRAM) in Secunderabad. In his speech at the seminar, D.P. Pande, Member/Traffic, Railway Board and President, CTRAM, stated that Indian Railways is at the crossroads, unable to meet the present demands due to resource crunch. He said that a staggering amount of Rs 1.18 lakh crore is needed for the completion of 359 major sanctioned railway projects. The need of the hour is for a fresh outlook and innovative thinking to generate required resources, he added.