Shares in rail stocks rallied after the government notified FDI for the sector. Texmaco Rail was up 9 per cent, while Kalindee Rail Engineering was locked at the upper end of the circuit filter and gained 5 per cent. Titagarh Wagons was also trading 5 per cent higher at the upper end of the circuit filter.
The government notified the liberalised FDI norms for the Railways, permitting 100 percent foreign direct investment through automatic route in several areas, including high speed trains.
This is expected to bring in fresh investments into the desperately needed Railways.