Railway stocks chug along

Kalindee Rail Nirman is up over 3% at Rs.117, Texmaco Rail was up over 2%, Kernex Micro is also up over 2%, Titagarh Wagons has surged up almost 4%.

Almost all railway stocks are in the green. This new found optimism on the counter is after Cabinet Committee on Economic Affairs (CCEA) gave its nod to 9 railway projects worth Rs.24,000 crore. These will be entirely financed through loan from the Life Insurance Corporation of India. The main thrust is to  de-congest the New Delhi-Chennai and Howrah-Mumbai sectors and this includes doubling and tripling of lines.

These projects would be completed in the next four years. Once completed, these projects would augment Railways’ capacity to 1.50 billion tonnes of freight and also faster movements of the passenger trains.