Kalindee Rail speeds up

There is a major buzz around Railway stocks. Kalindee Rail, Texmaco, Kernex, Titagarh Wagins, Nelco, Hind Rectifiers; the entire pack is up the green. This is led by Kalindee Rail, which is currently up almost 7% at Rs.70.40, with over 3 times surge in volumes.

Railway stocks are up on news doing the rounds that the UPA Govt, desperate to now score brownie points, is planning to soon announce a 74% FDI in Railways, which earlier was planned at 100%. Grapevine has it that the draft Cabinet note prepared by the Department of Industrial Policy & Promotion (DIPP) has been approved by the Railway Ministry and is now enroute to  the Union Cabinet for approval.

This FDI, as was stated earlier, would not be allowed in operations but only in construction and maintenance of railway projects. Many Chinese firms are stated to be interested and might be the first swoop down once the doors open up.