Railway stocks like IRFC Ltd, IRCON International and RVNL Ltd. are continuing to witness profit booking but are witnessing sharp swings in the first few minutes of trade.

Shares of Railtel opened marginally lower, but gained as much as 2 percent in the first few minutes of trade. However, the stock gave up all the gains soon after. The stock fell as much as 5 percent soon after.

RVNL shares also opened with losses but gained as much as 3.5 percent only to give up gains and fall as much as 4.4 percent within a few minutes.

IRCON International, which ended 20 percent higher on Monday, declined 6 percent on Tuesday and are down another 5.5 percent this morning.

Shares of RVNL are also declining on volumes that are more than double its 20-day average at this time of the day. IRCON's volumes are 70 percent higher than its 20-day average.

Experts on the street are advising some caution on these stocks after the run-up, with some even recommending booking profits.

"I think we will have to pick our own bunch of stocks depending upon what kind of work and numbers one is really expecting, market expert Hemang Jani told CNBC-TV18 when asked about the railway sector.

"Railway as a theme looks interesting, when you look at something like a Titagarh, IRCON, BEML - the ecosystem kind of a play which is there. I don't think there is too much of a concern. But typically, because of the high return nature of these names, you may go through a little bit of let's say 2-4 days kind of a correction of 10-15 percent. But I would definitely be looking to add into some of these names," he added.

Siddhartha Khemka of Motilal Oswal attributes these moves to profit booking and not panic selling. "The smart money that has made its profit after stocks went up 100-150 percent this year are currently looking to take some money of the table," he said. "Whether this selling will continue is anybody's guess but nothing on the fundamentals would change in two days to warrant such kind of selling unless its just profit booking," he added.

"Maybe there could be some consolidation, some price correction and so investors should be careful about investing in this segment of the market. I am not saying that opportunities are not there. I agree that the valuations, possibly are discounting maybe not even FY25-FY26, and my rule of thumb is that if you believe that the best discounted three years forward, then you should take some money off the table," Krishna Kumar Karwa of Emkay Global told CNBC-TV18 on September 11.