【MUMBAI】Shares of companies dependent on Railways' spending jumped on Tuesday as traders bet that the sector would be revived if the Bharatiya Janata Party comes to power.
Titagarh Wagons jumped 16%, Stone India gained 4.8%, Kernex Microsystems rose 4.6% and Kalindee Rail Nirman advanced 4.3%. BSE's small-cap index closed flat.
"Investment in railway infrastructure will be a priority for the new government. Railway stocks have rallied on anticipation of pro-reform government at the Centre," said Ambareesh Baliga, managing partner - global wealth management at Edelweiss
○For now, Railways plans desi bullet trains on a few routes @ 130 kmph
【New Delhi】Bullet trains might yet be a far-fetched dream for the country due to high costs involved, but Indian Railways plans to roll out the desi versions of these trains in the next one year.
The railways will launch semi-high-speed trains that will run at an average speed of 130 km per hour, nearly double that clocked by the Rajdhani and Shatabdi expresses, two of the fastest trains in the country at present. Once this happens, the travel time on the 266-km Delhi-Chandigarh route should be less than two hours. Currently, Shatabdi trains cover the same route in three hours and 20 minutes.
To start with, these trains are expected to become operational on three routes — Delhi-Chandigarh, Delhi-Lucknow and Delhi-Bhopal — by the end of this year or early next year at an estimated economical cost of R2.5 crore per km. This is much lower than the cost of around R200 crore per km for building high-speed rail networks, according to an estimate by RITES, the railways' consulting arm.
Railway shares pick up steam on hopes of NDA government
For now, Indian Railways plans desi bullet trains on a few routes @130 kmph