The shares of RITES Ltd registered the highest fall of 6.14%, going down to their day’s low of Rs 277, while Titagarh Rail Systems shares fell 5.3% to a low of Rs 887.75. Jupiter Wagons followed closely with a decline of 4.55% to Rs 393.10, while Ircon tumbled 4.7% to Rs 188.00.
RVNL shares recorded a 3.6% decrease, touching Rs 415.35, and IRFC fell 3.3% to reach Rs 136.75. Meanwhile, the shares of Texmaco Rail & Engineering also cracked 2.6% to Rs 155.75, whereas IRCTC registered a fall of 1.4%, hitting Rs 793.10.
Railway-related stocks witnessed a breakout rally recently, which was buoyed by renewed optimism over resumed orders from the railways and a broader bullish sentiment in mid-cap and small-cap stocks.
“The run-up in railway stocks is part of sector rotation in the market, as currently we are seeing the outperformance in PSU stocks, which had been quite beaten down in the recent market correction,” Sunny Agrawal, head of fundamental research at SBI Securities, had stated.
Also read: Ramesh Damani portfolio stock Protean falls another 13%, now down 30% in 2 daysAdditionally, a railways PSU-based ETF gained around 16% in the past week, according to an analysis by ETMutualFunds. There are two passive funds focused on railway PSUs—one is an ETF and the other is an index fund.The Groww Nifty India Railways PSU ETF rose 16.41% during this period, while the Groww Nifty India Railways PSU Index Fund, which also tracks the railway sector, delivered a 16.35% return.
However, after a sharp rise in these stocks, investors seem to have booked profit as the broader market sentiment turned on the negative side on Monday as the Nifty50 and Sensex slipped around 0.3% on Monday, dragged by losses in IT stocks after Moody’s downgraded the US government’s credit rating to ‘AA1’ from ‘AAA’, in early trade.
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