Texmaco is on a run today, currently up over 14% at Rs.104.40, closer to its intra day high at Rs.105.70. Volumes are up over 5 times. Other railway stocks are also up – Kalindee Rail is up 5%, and so is Titagarh Wagons, which is also up 5%. Kernex is frozen on the 5% upper circuit.

Railway stocks are up the Cabinet yesterday approved 100% FDI in railway infrastructure though foreigners will be barred from investing in railway operations. This will be a great booster for the Indian Railways, which desperately needs new investment to modernize itself. Suffering from low investments, this FDI is much needed and will go on to decongest the slow but huge railway network.

This 100% FDI is expected to come in operations like high-speed train, port and mining connectivity, gauge conversion, putting up new lines and doubling them, freight corridors.