RVNL, IRCTC, Jupiter Wagons shares jump up to 8% as railway stocks extend rally, all eyes now on Budget 2026

Railway stocks are back in play as shares of IRCTC, Jupiter Wagons, Rail Vikas Nigam and other rail-linked names climbed as much as 8% on Tuesday, extending a sharp sector-wide rally and pulling buyers back into a space that has battered portfolios through much of 2025. With Union Budget 2026 just weeks away, the surge is reviving a familiar market question: is this the start of a sustained turnaround, or another pre-Budget bounce that fades once the headlines do?Jupiter Wagons led the pack on Tuesday, with the stock rising as much as 7.6% to Rs 334.2. RailTel Corporation of India advanced 4.7% to Rs 357.80, while IRCTC climbed up to 1% to Rs 686.85. Texmaco Rail gained as much as 3.4% to Rs 136.65, and Titagarh Rail edged up 1.4% to Rs 830.50. Shares of Rail Vikas Nigam Ltd advanced 2.7% to Rs 341.65.The gains followed a strong showing on Monday, when several railway-linked stocks jumped as much as 13% in afternoon trade, driven by stock-specific triggers and a broader build-up of buying interest ahead of the Union Budget, now a little over a month away.What triggered the bounce in railway stocks?On Monday, IRCTC moved higher after Indian Railways announced a rationalisation of its fare structure, effective December 26, 2025, with the stock climbing over a percent to Rs 673. Jupiter Wagons surged 15% after the company disclosed an increase in promoter shareholding. Its promoter, Tatravagonka A.S., acquired additional equity shares through the conversion of convertible warrants issued earlier under a preferential allotment approved by the company.RailTel Corporation of India advanced over 4% amid reports that the state-owned telecom and ICT services provider is in talks with Elon Musk-owned Starlink for a potential partnership in India. Other railway names also moved higher, with RVNL gaining 5%, IRFC rising more than 3% and BEML jumping as much as 5%.The rally comes against the backdrop of a bruising year for railway stocks. Several names have eroded investor wealth sharply in 2025, with Titagarh Rail down 30%, RITES falling nearly 25%, BEML declining over 17%, Texmaco Rail plunging 36% and RailTel losing nearly 20%. Why Budget 2026 is key?Tthe renewed interest is not coincidental. Capex-heavy sectors typically attract attention ahead of the Union Budget, and market expectations for Budget 2026–27 include a potential 10–12% increase in railway capex to around Rs 2.76 trillion. The proposed outlay is expected to support the next phase of modernisation, including the rollout of 300–400 Vande Bharat sleeper trains and a doubling of allocations for the Kavach safety system.Still, caution remains. “While a pre-Budget hype rally is a historical pattern, the market in 2026 will likely demand concrete evidence of improved margins and faster project commissioning before committing back to the sector at previous highs,” Santosh Meena of Swastika Investmart told The Economic Times earlier.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)