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

• Railway stocks like RVNL, IRFC, and IRCON surged up to 26% in just five trading sessions, driven by renewed investor interest.
• The rally is attributed to a shift in market sentiment, pre-Union Budget 2026 expectations for increased capital expenditure, and new orders.
• A recent passenger fare hike (effective December 26, 2025) is an immediate trigger, expected to generate an additional Rs 600 crore revenue in FY26.
• Investors anticipate continued government focus on railway infrastructure, leading to increased capex for expansion and modernization in Budget 2026.
• Market experts advise caution, as the surge is largely sentiment-driven; long-term returns depend on actual budget support and fundamental performance.

Why It Matters: Railway stocks surged on budget expectations and a fare hike, but investors should remain cautious and focus on fundamentals.