New Delhi, May 19 -- Defence stocks have become a hot segment for Dalal Street investors ever since tensions between India and Pakistan escalated, bringing these domestic-focused companies back into the spotlight and triggering strong rallies similar to those seen during the first half of 2024.

Railway stocks also joined the rally, with most stocks in the segment gaining sharply. Shares of Rail Vikas Nigam, RITES, BEML, Ircon International, RailTel Corporation of India, IRCTC, and Indian Railway Finance Corporation delivered returns of up to 30% in May, as investors responded positively to steady order wins and healthy performance in the March quarter.

Railway stocks had previously experienced a sustained bull run from May 2023 to July ...