Rail stocks rise up to 10% on reform hopes after govt appoints new railway minister

Shares of rail sector-related companies gained as much as 10 per cent on Monday after the appointment of Suresh Prabhu as new railway minister.

Market experts said the scrips rose on hopes of reforms and investment in the rail sector.

Texmaco Rail & Engineering shares surged 10.23 per cent, while Kalindee Rail Nirman (Engineers) zoomed 9.51 per cent and Titagarh Wagons climbed 8.76 per cent on the Bombay Stock Exchange (BSE).

Stocks of Kernex Microsystems India jumped 4.96 per cent and Stone India shares rose by 4.61 per cent.

Suresh Prabhu was on Sunday inducted into the Union Cabinet and given Railway portfolio as Prime Minister Narendra Modi undertook an expansion of his council of ministers and reshuffled portfolios while bringing in 21 new faces.