Stock Markets Open on Budget Day February 1, Despite Sunday Trading Session

KEY TAKEAWAYS:

Stock markets will operate normally on February 1, 2026, despite it being a Sunday.
NSE confirmed live trading will follow standard timings from 9:15 am to 3:30 pm.
Settlement holiday rules will restrict share selling for purchases made on January 30 and Budget Day.

Mumbai:Indian investors will witness a rare weekend trading session as stock markets open on Budget Day February 1, 2026, even though the Union Budget presentation falls on a Sunday.

Both major exchanges will conduct a regular live session to allow investors to react immediately to Budget announcements.

NSE Confirms Full Live Trading Session on Budget Day

The National Stock Exchange (NSE) issued a formal circular confirming that markets will remain open during standard hours.

“On account of the presentation of the Union Budget, the Exchange shall be conducting a live trading session on February 1, 2026, as per standard market timings (9:15 am–3:30 pm),” NSE stated.

This continues the long-standing tradition of keeping markets open when Budget Day falls on a weekend.

Settlement Holiday Restrictions for Investors

Despite the trading session, February 1 will be observed as a settlement holiday.

This means:

Shares purchased on January 30 cannot be sold on February 1
Stocks bought on Budget Day cannot be offloaded the next day
These restrictions are expected to influence short-term trading strategies.

Sitharaman to Present Union Budget 2026–27 at 11 AM

Finance Minister Nirmala Sitharaman will present the Union Budget 2026–27 in the Lok Sabha at 11 am on February 1.

This will be her ninth consecutive Budget, placing her among finance ministers with the longest uninterrupted tenure.

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It will also be the second full Budget after the NDA returned to power for a third straight term in 2024.

Key Investor Focus: Fiscal Deficit and Borrowings

Market analysts suggest investors will closely track fiscal indicators in the upcoming Budget.

A recent report highlighted that key attention will be on:

Debt metrics
Fiscal deficit outcomes
Scheduled government borrowings

Borrowings are expected to rise modestly by around 3 per cent year-on-year.

Experts estimate the FY27 fiscal deficit may land near 4.1–4.2 per cent of GDP, aligning with India’s ongoing fiscal consolidation roadmap.

Budget Day Trading Expected to Drive Volatility

With markets open during the Budget presentation, volatility is expected as investors respond in real time to policy measures, taxation decisions, and spending plans.

The February 1 session is likely to set the tone for Indian equities in the weeks ahead.