Railway stocks rise ahead of Rail Budget; gain up to 8%

Stocks of companies related to railways sector on Friday closed with gains of up to 8 per cent on hopes of reform measures in the rail budget to be presented on Tuesday next week.

Texmaco Rail and Engineering Ltd zoomed 7.69 per cent, while Titagarh Wagons rose 4.98 per cent on the BSE.

Among others, Kernex Microsystems India gained 4.97 per cent and Kalindee Rail Nirman (Engineers) surged 4.97 per cent.

"Some measures which can be expected in this railway budget are FDI in railways, increasing the number of trains, increasing the speed of the trains by cleaning up surrounding areas of railway tracks, introduction of bullet trains," said Yogesh Nagaonkar, VP- Institutional Equities, Bonanza Portfolio.

Meanwhile, ahead of the rail budget, Prime Minister Narendra Modi on Friday hinted at an increased role of the private sector in development of railways.

Modi said railway stations in metros and important cities such as Jammu would be priority for the government with regard to development of railway stations.

Railways Minister Sadananda Gowda will present his maiden rail budget on July 8 in Parliament.