Shares of Texmaco Rail & Engineering surged 13.03 per cent, while Titagarh Wagons rallied 4.99 per cent on the BSE.
Kalindee Rail Nirman (Engineers) was up 4.96 per cent and Kernex Microsystems soared 4.38 per cent.
On Friday also, these stocks had gained up to 8 per cent.
"Some measures which can be expected in this railway budget are FDI in railways, increasing the number of trains, increasing the speed of the trains by cleaning up surrounding areas of railway tracks, introduction of bullet trains," said Yogesh Nagaonkar, VP- Institutional Equities, Bonanza Portfolio.
Railways Minister Sadananda Gowda will present his maiden rail budget tomorrow in Parliament.
Meanwhile, the broader market was also strong with the benchmark Sensex gaining 138.02 points to close at 26,100.08.