Indian share markets continued to trade in the green during closing hours and ended their day on a strong note.
Benchmark indices extended their gains as US President Donald Trump said Iran's missile strikes had not harmed any Americans and that Tehran appeared to be "standing down".
On the sectoral front, gains were largely seen in the realty sector, automobile sector and banking sector.
At the closing bell, the BSE Sensex stood higher by 635 points (up 1.6%) and the NSE Nifty closed higher by 191 points (up 1.6%).
The BSE Mid Cap index ended up by 1.5%, while the BSE Small Cap index ended the day up by 1.6%.
Asian stock markets finished on a positive note as of the most recent closing prices. The Hang Seng was up 1.7% and the Nikkei stood higher by 2.3%.
The rupee was trading at 71.39 to the US$ at the time of writing.
As per a leading financial daily, in consultation with the NITI Aayog, the government's policy think-tank, the railway ministry has picked 100 routes to run 150 private passenger trains. As per the news, the bids for the routes are likely to be invited soon.
The 100 routes have been split into 10-12 clusters. According to the plan, the private operator will have the right to collect market-linked fares and will be provided flexibility of class composition and halts. They will also be able to use the rail infrastructure on payment of haulage charges.
According to a recent Economic Times report, the finance ministry's Public Private Partnership Appraisal Committee had given an in-principle nod to the proposal last month, paving the way for the railways to roll out its reform in engaging private operators and ending its long monopoly in running passenger trains.
According to the information memorandum put up on the NITI Aayog website, the reserved passenger volume during 2018-19 was 16% (0.59 billion) of the total originating non-suburban passengers (3.65 billion). Almost 88.5 million of wait-listed passengers could not be accommodated.
The memorandum says there is, hence, a critical requirement to introduce private operations in passenger train which will allow introduction of next generation technology and provision of higher service quality, ensuring use of improved coach technology and reduced journey time.
The railways' experimentation with private participation in running of trains started last year when it allowed its subsidiary - the Indian Railway Catering and Tourism Corporation (IRCTC) to run the Tejas Express on the Lucknow-Delhi route.
According to the news reports, the train posted a profit of Rs 7 million in its first month of operation and had run with an average occupancy of 80-85% since it began operations on October 5.
We think the above development is a step in the right direction.
Here's what Tanushree Banerjee wrote about this in today's edition of The 5 Minute WrapUp...
- Investment in Indian railways has always been lacking in the past. This has meant a stretched infrastructure with more than 60% of routes being over utilised.
The poor image of Indian railways meant a price hike was never an option for the government.
All this has changed in the recent years.
Since 2014, investment in the Indian railways has increased at a rapid pace.
This is evident in the chart below...
Massive Reforms Underway in the Indian Railways
The government's aim to modernize more than 100 stations to world class standards and by provide amenities like wi-fi, quality food and beverage services will improve passenger experience.
Improved services will also help the government justify fare increases in the future.
Tanushree believes such reforms are the need of the hour for the Indian economy.
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