The markets expect the budget to bring in fiscal stability in the railways and fund inflows for modernisation in line with the new government's proposal for infrastructure development through public private partnership (PPP) models.
There is also speculation of allowing foreign funds into the railways by opening the sector to attract investment.
On Tuesday, at the Bombay Stock Exchange (BSE), Kalindee Rail Nirman (Engineers) increased 2.51 percent or 3.40 points around 11.00 a.m. at Rs.138.75, moving up from previous close of Rs.135.35.
Stocks of Transformers and Rectifiers (India), reported gain of 2.37 percent or 5.20 points at Rs.224.95 from its previous close of Rs.219.75. Hind Rectifiers shares too made healthy gains, they rose 2.26 percent or 1.35 points at Rs.61.10 from previous close of Rs.59.75.
Container Corporation of India stocks gained 2.50 percent or 33.70 points at Rs.1,381.75 from its previous close of Rs.1,348.05.
However, shares of wagon maker Texmaco Rail and Engineering fell 3.91 percent or 5.70 points to trade at Rs.140, declining from its previous close of Rs.145.70.
Scrips of another wagon manufacturer Titagarh Wagons, slipped by 1.98 percent or 6.55 points at Rs.324 from its previous close of Rs.330.55.
Earlier in the morning Gowda, a former Karnataka chief minister who represents the Udupi Chikmagalur constituency in the Lok Sabha, tweeted: "Going to present my maiden budget as a rail minister of India today. Hope we are able to meet public expectations."
Last month he had listed safety and security of women and the elderly as also passenger amenities like drinking water, waiting areas and rest rooms as his priority areas and said that effort will be made to make the railways efficient and passenger oriented.