Railway public sector undertakings experienced a sharp reversal on Thursday, October 1, 2026, with stocks falling up to 6% after the previous session's strong rally. According to latest reports, IRCON International tumbled 6.23% to hit an intraday low of ₹109.75, while RailTel slipped 3.37% to an intraday low of ₹257.30 and Titagarh Rail declined 1.91% to ₹803 per share. The decline came after the previous session's surge, where IRCON International had zoomed 18.32% to hit an intraday high of ₹121.05, RITES rallied 12.13% to ₹215.80, and RailTel gained 8.48% to hit an intraday high of ₹281.15.
Market experts attribute the decline to profit booking after the sharp rally seen in the previous session, with technical factors also playing a role. Avinash Gorakshkar, Founder of Avinash Mentor Research, explained that railway stocks are falling due to weak market sentiments and technical reasons. He noted that on Tuesday, there were monthly and weekly expirations, which led to strong volume rally on Wednesday, followed by profit-booking when market mood changed to bearish. Ravi Singh, chief research officer at Master Capital Services, confirmed that railway PSU stocks such as IRCON International, RITES and RailTel are witnessing profit booking after their sharp rally on September 30, when these stocks rose 5%-15% on heavy volumes. Singh noted that the reversal was "largely technical" as traders locked in gains after the sudden upmove amid weak broader market sentiment.
Despite the current decline, market experts view this as a potential value-picking opportunity. Avinash Gorakshkar advised that railway stocks' fundamentals are still intact and this dip should be taken as a value-picking opportunity, specifically recommending Texmaco Rail and Engineering for investment. Sumeet Bagadia, Executive Director at Choice Broking, provided technical analysis for Texmaco Rail, stating that the stock is looking positive on technical charts with a target of ₹150 for existing shareholders, while fresh investors can buy at current market price with a stop-loss at ₹108. The expert noted that the company is in the metro rail business with strong demand for metro railway projects expected to fuel the company's order book in the medium to long term.
As of the latest trading session, IRCON International shares were trading 5.38% lower at ₹110.75, while RITES was down 0.33% at ₹208.65 and RailTel was trading 3.25% lower at ₹257.65. IRFC dropped 1.20% to ₹78.10, IRCTC fell 1.86% to ₹447, and RVNL was down 1.36% at ₹199.25. In comparison, the broader market showed weakness with the BSE Sensex trading 0.22% lower at 72,320 levels, indicating that railway sector's strong momentum from the previous session has reversed amid broader market pressure. The current decline follows the sell-off in the Indian stock market, with railway stocks coming under bear's radar during Thursday's trading session.
