Railway Stocks: The majority of railway stocks experienced profit booking during intraday trading on the NSE on Tuesday, May 20, dropping 1% to 5% following a robust surge in recent sessions.
On the NSE, shares of Ircon International sank by about 5%, while those of Titagarh Rail Systems and RailTel plunged by more than 5% each. The price of RVNL and IRFC shares fell 4% and 3%, respectively, while BEML shares fell more than 4%. Additionally, trading down were Texmaco Rail & Engineering (down 3%), Concor (down 2%), and IRCTC (down 1%).
IRFC, RailTel Drop: Time to Invest?
In recent years, railway stocks have experienced significant increases. When profit booking occurs in stocks, investors are faced with the age-old question: Is it a good time to purchase railway stocks?
Defense companies came back into the spotlight for investors as tensions between India and Pakistan increased. Additionally, this change increased interest in domestic-focused topics like PSUs and railroads, which later started to gain traction.
In anticipation of the comparable gains observed from May 2023 to July 2024, a large number of retail investors appear to have snatched up the stocks of these segments.
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Should you buy Railway Stocks now?
Due to sector rotations and anticipation of increasing government emphasis and orders, railway stocks have recovered from a 50% decline from their peaks.
The prognosis for businesses in the industry has improved with the influx of new government contracts, key capital expenditure announcements, and increased order flows from Indian Railways.
Disclaimer: This article is for educational purposes only. The views and recommendations are from individual analysts. Please consult certified experts before making any investment decisions, as market conditions can change quickly.