Titagarh Wagons, Texmaco Soar on Rail FDI Relaxation

Railway infrastructure related stocks jumped on Thursday as the government notified hike in foreign direct investment (FDI) in the railway sector.

Texmaco Rail & Engineering surged 9 per cent, Titagarh Wagons jumped 5 per cent whereas Bharat Earth Movers was up 5 per cent.

The government has allowed 100 per cent FDI in Railway Infrastructure, high speed train project. The government has also allowed 100 per cent FDI in rolling stocks including train sets.

Umesh Chowdhary, vice chairman and managing director at Titagarh Wagons speaking to NDTV said "It is a great move. We have been hearing about FDI being opened for the railway sector for a long time, it finally happened.....it will enlarge our customer base to a great extent."

But however Mr Chowdhary said this is just an enabler, much depends on what would be the policies. "If the policies that will be announced by the Railways are not made attractive and simple enough then the foreigners are going to shy away," he added.