Shares of government-owned railway firms, including Rail Vikas Nigam Ltd (RVNL), Indian Railway Finance Corporation (IRFC) Ltd, IRCON International Ltd, and RailTel Corporation Ltd, fell by as much as 6% on Monday, February 3, as the downward trend in these stocks persisted following the Union Budget announcement on Saturday.

In an unexpected turn, the Union Budget failed to provide any specific announcements regarding railway stocks, leaving investors disappointed.

Although the capital expenditure for the financial year 2025-26 (FY26) saw an increase of nearly 10% to ₹11.2 lakh crore from ₹11.11 crore in the previous year, the budget allocation for the railway sector has not changed. As per the Budget document, the allocation for the railways sector remains steady at ₹2.55 lakh crore for FY26. This figure was also ₹2.55 lakh crore in the last financial year.

There were strong market expectations that the government would enhance the capital expenditure for the railway sector, but this did not come to pass.