Railway stocks rebound: IRCTC and Jupiter Wagons lead gains; Budget capex hopes lift stocks

Shares of several railway-linked companies surged in afternoon trade on December 22, as stock-specific triggers and rising pre-Budget expectations sparked fresh buying interest across the sector.Jupiter Wagons, IRCTC, RailTel and RVNL were among the top gainers, with some stocks rising as much as 15%, according to an ET report. The rally comes just over a month ahead of the Union Budget, a period that typically sees heightened focus on capital expenditure-linked themes.IRCTC led early gains after Indian Railways announced a rationalisation of its fare structure, effective December 26, 2025. The stock climbed over 1% to Rs 673. Jupiter Wagons jumped 15% after disclosing 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 more than 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 around 5%, IRFC rising over 3% and BEML jumping as much as 5%.The rebound comes against the backdrop of a tough year for railway stocks. Several names have seen sharp erosion in investor wealth in 2025, with Titagarh Rail down 30%, RITES falling nearly 25%, BEML declining over 17%, Texmaco Rail plunging 36% and RailTel losing close to 20%. Collectively, railway stocks have wiped out an estimated Rs 1.32 lakh crore in market capitalisation, despite being a key pillar of India’s capex-led growth narrative.Market participants are now looking ahead to Budget 2026–27, where expectations point to a possible 10–12% increase in railway capex to about Rs 2.76 trillion. The proposed outlay is expected to support further modernisation, including 300–400 Vande Bharat sleeper trains and higher allocations for the Kavach safety system.“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 ET.