Why Railway Stocks are surging ahead of Budget?

Ahead of Budget 2025, railway stocks like RVNL, Railtel, and Titagarh Rail Systems surged due to expectations of a 15-18% budget increase for FY26. This hike aims to accelerate the rollout of Vande Bharat and high-speed bullet trainsets. Analysts believe faster capital expenditure and increased deliveries of new trains are key factors driving this optimism. The government’s commitment to enhancing rail infrastructure is seen as a positive catalyst for the sector. Market experts suggest the anticipated budgetary support will benefit established players and provide opportunities for new entrants. Investors are closely monitoring potential policy measures and funding allocations, reflecting the market’s confidence in the sector’s growth prospects.