Railway stocks, including RVNL, IRFC, and IRCTC, experienced a significant rally, with some gaining up to 12 percent. This surge is attributed to two primary factors: a recent increase in passenger train fares, aimed at improving financial sustainability while balancing affordability, and optimism surrounding potential higher allocations in the upcoming Union Budget 2026-27. Investors are anticipating continued government prioritization of railway infrastructure development and modernization projects, which historically boosts these companies. Despite recent gains, some major railway stocks remain down for the year.