Railways PSU ETF delivers 16% in a week. Is this the right opportunity for portfolio diversification?
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.
Also Read | Sensex @82,300: Should mutual fund investors alter their investment strategy?
These schemes are benchmarked against the Nifty India Railways PSU Index – TRI, which surged 16.46% during the same period.
'The rally in railway stocks is part of sector rotation in the market, as PSU stocks—particularly those that were beaten down during the recent correction—are now outperforming,' said Sunny Agrawal, Head of Fundamental Research at SBI Securities, in a statement to ET Bureau.
Agrawal also noted that Tube Investments of India, during its recent earnings call, mentioned that railway order inflows are back on track, easing concerns about a slowdown in the sector.
According to a report by ET Bureau, shares of railway-related companies surged in a breakout rally on Friday, riding the bullish momentum in mid-cap and small-cap stocks amid optimism that Railway orders have resumed.
The report further highlighted that on Thursday, Rail Vikas Nigam, in a stock exchange disclosure, announced it had received a Rs 115.8 crore contract for upgradation work from Central Railway.
Also Read | Flexi Cap vs. Multi Asset Allocation Mutual Funds: Which one is best for you?
Separately, Ircon International informed the exchanges on Thursday that it had received a Letter of Acceptance (LoA) from North Western Railway for the 'Provision of Remote Diagnostic & Predictive Maintenance System', valued at Rs 51.6 crore.
Despite the recent rally, shares of most railway-related companies remain 10–25% below their pre-correction levels, with the decline beginning in late September.
Apurva Sheth, Head of Research at Samco Securities, noted that defence and railway stocks moved in tandem during last year's bull market, and a similar performance trend is playing out again now.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
4 hours ago
- Business Upturn
ITD Cementation secures Rs 893 crore contract for Odisha jetty development
By Aditya Bhagchandani Published on June 9, 2025, 16:59 IST ITD Cementation India Limited has bagged a significant contract worth approximately Rs 893 crore, inclusive of GST, for constructing a Berth and Breakwater as part of a Greenfield Captive Jetty development project in Odisha. The company confirmed that the project falls under the ordinary course of its business operations. According to the official press release dated June 9, 2025, the new order strengthens ITD Cementation's portfolio in maritime infrastructure, a core focus area for the company. With this project, ITD continues its strong track record in delivering complex engineering and EPC assignments across India. Established for over nine decades, ITD Cementation is a key player in heavy civil infrastructure with expertise spanning maritime structures, metros, airports, tunnels, hydroelectric projects, highways, and more. This development highlights continued infrastructure momentum in the eastern corridor, particularly along the coastline, where industrial and port-linked activities are witnessing renewed investments. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
5 hours ago
- Business Upturn
Motilal Oswal slapped with fine as SEBI penalizes firm for client-level reporting lapses
The Securities and Exchange Board of India (SEBI) has imposed a monetary penalty of Rs 2 lakh on Motilal Oswal Financial Services Ltd. (MOFSL) for incorrect reporting of client information on stock exchanges, citing a lapse in due diligence expected from a registered intermediary. According to the adjudication order, MOFSL had submitted erroneous Unique Client […] By Aditya Bhagchandani Published on June 9, 2025, 15:49 IST The Securities and Exchange Board of India (SEBI) has imposed a monetary penalty of Rs 2 lakh on Motilal Oswal Financial Services Ltd. (MOFSL) for incorrect reporting of client information on stock exchanges, citing a lapse in due diligence expected from a registered intermediary. According to the adjudication order, MOFSL had submitted erroneous Unique Client Code (UCC) details for three clients, resulting in mismatches between actual client PANs and those reported to the exchanges (NSE and BSE). Although the violations were not found to be fraudulent, SEBI noted that such discrepancies undermine market surveillance mechanisms and regulatory oversight. The regulator emphasized that stock brokers play a key role in maintaining transparency and integrity in the market, and that accurate UCC mapping is crucial for traceability of trades, especially during abnormal market movements or in investigations involving potential misconduct. SEBI acknowledged MOFSL's submission that the errors were technical and had been rectified, but maintained that the firm failed to exercise adequate care and diligence in fulfilling its regulatory obligations. The penalty has been imposed under Section 15HB of the SEBI Act, which allows for punishment in cases of contravention where no specific penalty is prescribed. This order serves as a reminder to all market intermediaries to maintain strict compliance protocols and ensure accurate client-level disclosures to the exchanges and regulators. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
5 hours ago
- Business Upturn
Nifty 50 top gainers today, June 9: Jio Financial Services, Kotak Mahindra Bank, Bajaj Finance, Trent and more
By Aman Shukla Published on June 9, 2025, 15:38 IST Indian benchmark indices continued their upward momentum for the fourth consecutive session on June 9, 2025. The Nifty 50 closed above the 25,100 mark for the first time, settling at 25,103.20, up 100.15 points (0.40%). The Sensex also ended higher by 256.22 points (0.31%) at 82,445.21. Among the Nifty 50 stocks, several companies recorded significant gains, led by Jio Financial Services, Kotak Mahindra Bank and Bajaj Finance. Below is a detailed look at the top gainers of the Nifty 50 (as per Trendline) for the day. Nifty 50 Top Gainers on June 9 Jio Financial Services closed at ₹305.5, registering a 3.9% gain. Kotak Mahindra Bank ended the day at ₹2140.8, up by 3.3%. Bajaj Finance rose 2.7% to close at ₹9624.0. Trent gained 2.5%, finishing at ₹5922.0. Axis Bank closed at ₹1220.5, marking a 2.2% increase. Adani Enterprises ended at ₹2582.0, up 1.9%. Hero MotoCorp advanced 1.7% to close at ₹4342.0. IndusInd Bank rose 1.6%, settling at ₹836.0. Power Grid Corporation gained 1.6%, closing at ₹300.5. Bajaj Finserv also ended 1.6% higher at ₹2021.0. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Bajaj FinanceJio Financial ServicesKotak Mahindra BankNiftyTrent Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
