New Delhi, Jan. 21 -- The lead-up to Budget 2026 has been particularly vibrant in railways, where a combination of fare rationalization and expectations of another year of elevated capital expenditure has driven a sharp rally in railway-linked stocks.

A passenger fare hike implemented in late December 2025 is seen as a structural positive for Indian Railways' internal resource generation, improving the backdrop for continued investment in rolling stock, safety, and station redevelopment.​

Market commentary flags the possibility of a 10-12% increase in railway capex, potentially taking the outlay to around Rs.2.76 trillion, with explicit focus on:

* Scaling up Vande Bharat sleeper trains (300-400 units indicated in street expectat...