Domestic institutional investors (DIIs) significantly increased their holdings in three Indian railway stocks during the second quarter ending June 2026, according to market data reported by Livemint.

The accumulation highlights a continued preference among domestic funds for the infrastructure and transportation sectors, which have benefited from the Indian government's ongoing capital expenditure push.

The buying activity comes as institutional capital flows into a select group of Indian equities, with both foreign and domestic investors increasing their positions in the June quarter.

While the specific names of the three railway stocks were not detailed in the initial report, the sector has seen heightened interest due to the scale of Indian Railways' modernization and expansion programs.

The network remains one of the world's largest, transporting millions of passengers and vast volumes of freight daily, making it a critical component of the country's economic infrastructure.

This trend aligns with broader market movements where domestic funds have been net buyers in recent quarters, offsetting periods of foreign portfolio investor outflows.