Railway stocks rally ahead of Union Budget 2026 on capex hopes

Railway stocks rallied sharply on Friday as renewed optimism ahead of Union Budget 2026 sparked fresh buying interest across the sector.

Rail Vikas Nigam surged 9.16%, while RailTel Corporation of India 6.63%. Indian Railway Finance Corporation advanced 6.30%. Manufacturing-linked names also gained, with Titagarh Rail Systems rising 4.91% and Texmaco Rail & Engineering up 4.59%.

RITES rose 4.26% and Ircon International gained 4.25%. Among other stocks, Jupiter Wagons climbed 2.14%, while Indian Railway Catering and Tourism Corporation advanced 1.66%.

Market participants are positioning for higher government capital expenditure on rail infrastructure, rolling stock expansion and network modernisation, a trend that has historically supported railway-linked stocks in the run-up to the Budget.

The broader rally reflects expectations that the upcoming Budget will continue to prioritise railways as a key pillar of Indias infrastructure push.

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