MUMBAI, June 23: Shares of companies engaged in railways-related businesses today rallied on the back of a hike in passenger fares and freight rates 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. (PTI)
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