Shares of several railway-related companies witnessed strong buying interest during afternoon trade on December 22, driven by company-specific developments and growing optimism ahead of the Union Budget. The rally reflects renewed investor attention on capital expenditure-focused sectors, which typically gain traction in the run-up to the Budget.
Stocks such as Jupiter Wagons, IRCTC, RailTel and Rail Vikas Nigam Ltd (RVNL) emerged as key gainers. Some counters advanced as much as 15%, according to a report by The Economic Times.
IRCTC was among the early movers after Indian Railways announced a rationalisation of passenger fares, set to take effect from December 26, 2025. The development lifted IRCTC shares by over 1% to around ₹673.
Jupiter Wagons saw the sharpest jump, surging nearly 15%, after the company disclosed an increase in promoter holding. Its promoter, Tatravagonka A.S., acquired additional equity through the conversion of convertible warrants issued earlier under a preferential allotment approved by shareholders.
RailTel Corporation of India also gained momentum, rising more than 4% amid reports that the state-run telecom and ICT services provider is in discussions with Elon Musk-owned Starlink for a potential partnership in India.
The positive sentiment spilled over to other railway-linked stocks as well. RVNL climbed about 5%, Indian Railway Finance Corporation (IRFC) rose over 3%, and BEML advanced up to 5% during the session.
The rally comes after a challenging year for the railway sector in 2025, during which several stocks suffered steep declines. Titagarh Rail Systems has fallen around 30% so far this year, RITES is down nearly 25%, BEML has slipped over 17%, Texmaco Rail & Engineering has dropped about 36%, and RailTel has lost close to 20%. Overall, railway stocks have collectively eroded an estimated ₹1.32 lakh crore in market capitalisation, despite being central to India’s infrastructure-led growth strategy.
Looking ahead, investor focus is shifting to the Union Budget for 2026–27. Market expectations suggest a potential 10–12% increase in railway capital expenditure, taking the total outlay to nearly ₹2.76 trillion. The anticipated allocation is likely to support further modernisation initiatives, including the introduction of 300–400 Vande Bharat sleeper trains and higher spending on the Kavach train protection system.
However, analysts caution that optimism alone may not be enough to sustain the rally. “Pre-Budget rallies in railway stocks are a recurring trend, but markets in 2026 will likely look for tangible improvements in margins and faster execution of projects before returning to earlier valuation highs,” said Santosh Meena of Swastika Investmart, as quoted by ET.