Mumbai: India’s railway stocks are showing signs of recovery after a long period of weakness, with the sector witnessing a sharp rally over the past five trading sessions.The recent surge has added more than Rs 66,500 crore to the market value of railway-linked companies, as investors reposition ahead of the Union Budget and respond to improving revenue signals.

Railway stocks had remained under pressure for most of 2025 after the sector peaked in July 2024.Since then, many stocks corrected sharply as high valuations cooled and expectations around policy support eased.The latest rebound suggests a cautious return of investor interest, driven by a mix of fare hikes, budget hopes and company-specific developments.

The rally has been led by Jupiter Wagons, whose shares jumped nearly 37 per cent in just five days, making it the best-performing railway stock in the recent upswing.