Rail stocks rally thanks to Indian Railways' fare, freight hike
Shares of companies engaged in railways-related businesses today rallied on the back of a hike in passenger fares and freight rates
Mumbai: Shares of companies engaged in railways-related businesses today rallied on the back of ahike in passenger fares and freight rates to improvefinances of Indian Railways.
Cash-strapped railways has increased passenger fares byover 14 per cent and the freight charges by over 6 per centand the move is expected to result in additional revenuemop-up of Rs 8,000 crore. The hike would come into effect from 25June.
Reacting to the development, shares of Kalindee RailNirman rose by about 2 per cent to Rs 121.75, Texmaco
Infrastructure by 3 per cent at Rs 39.65 and Texmaco RailEngineers by over 3 per cent at to Rs 121 in morning tradeon the BSE.
Titagarh Wagons also gained over 2 per cent to Rs 320.25,while Simplex Castings rallied nearly 5 per cent to Rs 53.3and Container Corporation of India rose nearly 2 per cent toRs 1179.95.
More from BudgetThe rail stocks have also been in focus in recent days onexpectations of FDI being allowed in certain railways-relatedbusinesses. The gains seen today in rail stocks was in sharpcontrast to the overall sluggishness in the market. Thebenchmark index Sensex was down 72 points at 25,033.48 in latemorning trade.
PTI
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