Railway Shares Soar 12% as Fare Hike Boosts Sector Confidence

• Railway shares, including RVNL, IRCTC, and IRFC, surged up to 12% today following the implementation of revised passenger train fares.
• The fare hike, effective from Friday, is the second this year and is projected to generate an additional Rs 600 crore revenue for Indian Railways by 2025-26.
• Market analysts view the fare increase as a positive for the sector, potentially improving Railways' financial health and supporting infrastructure spending.
• Experts like Shravan Shetty link gains to the fare hike's impact on railway finances, accelerating capital expenditure for related players.
• Investors are also positioning ahead of the Union Budget 2026-27 allocations, with some advising profit booking in EPC stocks like RVNL before the Budget.

Why It Matters: Railway stocks rally on fare hike and Budget expectations, signaling improved sector outlook.