Shares of companies engaged in railways-related businesses today rallied on the back of rail fare hike (both passenger and freight) to improve finances of Indian Railways.
Cash-strapped railways has increased passenger fares by over 14 per cent and the freight charges by over 6 per cent and the move is expected to result in additional revenue mop-up of Rs 8,000 crore. The hike would come into effect from June 25.
Reacting to the development, shares of Kalindee Rail Nirman rose by about 2 per cent to Rs 121.75, Texmaco Infrastructure by 3 per cent at Rs 39.65 and Texmaco Rail Engineers by over 3 per cent at to Rs 121 in morning trade on the BSE.
Titagarh Wagons also gained over 2 per cent to Rs 320.25, while Simplex Castings rallied nearly 5 per cent to Rs 53.3 and Container Corporation of India rose nearly 2 per cent to Rs 1179.95.
The rail stocks have also been in focus in recent days on expectations of FDI being allowed in certain railways-related businesses. The gains seen today in rail stocks was in sharp contrast to the overall sluggishness in the market. The benchmark index Sensex was down 72 points at 25,033.48 in late morning trade.