Railway Stocks Soar 26% in 5 Days: Budget Hopes, Fare Hike Fuel Rally

• Government-owned railway companies like RVNL, IRFC, and IRCON International saw significant share price surges, with RVNL up 26.5% in five trading sessions.
• The rally is primarily driven by changed investor sentiment and pre-budget expectations, rather than fundamental improvements, as stocks were previously oversold.
• A recent passenger fare hike, effective December 26, 2025, is expected to generate an additional ₹600 crore, positively impacting railway revenues.
• Investors anticipate increased capital expenditure in Budget 2026 for railway infrastructure, including track expansion, new rolling stock, and safety upgrades.
• Experts advise caution, emphasizing that long-term performance depends on actual budget support, project execution, and strong fundamentals, not just short-term sentiment.

Why It Matters: Railway stocks surged due to budget expectations, fare hikes, and sentiment, but investors should remain cautious.