Railway sector stocks, which recently saw a sharp rally, declined by up to 6% on May 20 as investors booked profits during a broader market sell-off. Major stocks like RITES, Titagarh Rail Systems, Jupiter Wagons, and Ircon registered significant losses. The correction comes after a strong performance in the previous week, with railway-focused ETFs gaining over 16%. Overall market weakness and global cues contributed to the decline.
Shares of key railway sector companies saw a notable correction of up to 6% on Monday, May 20, amid broad-based selling pressure in the Indian equity markets. After several sessions of sharp gains, investors opted to lock in profits, resulting in a decline across multiple railway-related stocks.
Among the biggest losers, RITES Ltd fell by 6.14% to touch the day’s low of ₹277, while Titagarh Rail Systems dropped 5.3% to ₹887.75. Jupiter Wagons registered a 4.55% decline to ₹393.10, followed by Ircon, which slid 4.7% to ₹188.00.
Other notable losses included:
- RVNL: down 3.6% to ₹415.35
- IRFC: fell 3.3% to ₹136.75
- Texmaco Rail & Engineering: dropped 2.6% to ₹155.75
- IRCTC: slipped 1.4% to ₹793.10
The pullback in railway stocks comes after a significant rally fueled by renewed activity in the sector. Two railway-focused passive funds—Groww Nifty India Railways PSU ETF and Groww Nifty India Railways PSU Index Fund—delivered gains of over 16% each in the previous week.
Despite strong recent performance, Monday’s decline aligned with weakness across broader markets. Both the Nifty50 and Sensex slipped around 0.3%, impacted by global cues including a U.S. credit rating downgrade, which dampened investor sentiment.
