Budget 2026: Stock Market Open on Sunday, Feb 1

Special Sunday Session for Union Budget 2026

The Indian stock market is set for an unusual trading day, as both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have announced plans to remain open on Sunday, February 1, 2026. This special session is scheduled to coincide with the presentation of the Union Budget for the fiscal year 2026-27 by Finance Minister Nirmala Sitharaman. This move breaks the standard Monday-to-Friday trading week, ensuring that market participants can react in real-time to the fiscal policy announcements.

Official Confirmation and Timings

In circulars issued on January 16, 2026, both major exchanges confirmed the live trading session. The NSE stated, "On account of the presentation of the Union Budget 2026, the Exchange will conduct a live trading session on Sunday, February 1, 2026. Trading will be carried out as per standard market timings." This decision underscores the significance of the budget in influencing market sentiment and investment strategies.

Despite it being a weekend, the trading hours will follow the regular schedule to maintain consistency and provide a familiar environment for traders and investors. The exchanges have outlined a clear schedule for the day's activities.

The pre-open session will have a random closure in the final minute, as is standard practice, to ensure fair price discovery before the regular market opens.

Rationale for the Weekend Session

The primary reason for opening the markets on a Sunday is to allow for immediate price discovery and manage potential volatility. By enabling live trading during the budget presentation, the exchanges aim to prevent a build-up of reactions that could lead to extreme market swings when trading resumes after a holiday. This is not an unprecedented move. The stock market has previously conducted special sessions on weekends for the Union Budget, notably in 2015 and 2020, when the budget was presented on a Saturday.

Market Segments and Operational Details

Both the NSE and BSE have confirmed that all major segments will be operational during this special session. This includes the capital market (equities), futures and options (F&O), and commodity derivatives segments. Special sessions, such as block deals and periodic call auctions, will also be conducted as per their usual schedules. BSE will hold its morning block deal window from 8:45 AM to 9:00 AM and the afternoon window from 2:05 PM to 2:20 PM.

However, it is important for market participants to note that T+0 (trade day) settlement will not be available on February 1. This is due to restrictions related to settlement holidays, meaning trades executed on this day will be settled in the subsequent working days as per the standard cycle.

Anticipated Market Impact and Sectors in Focus

Budget Day is historically associated with high market volatility, as traders and investors react to announcements related to taxation, government spending, and industry-specific reforms. The upcoming session is expected to be no different. Market participants should prepare for significant price movements as the Finance Minister's speech unfolds.

Several sectors are expected to be in sharp focus during the trading session. These include:

• Infrastructure: Announcements on government capital expenditure and new projects.
• Banking and Financial Services: Policies affecting lending, credit growth, and capital infusion.
• Railways and Defence: Sector-specific allocations and policy reforms.
• Real Estate and Consumption: Changes in tax structures or incentives that could impact consumer spending and property markets.

A Day of Overlapping Events

Adding another layer to the day, February 1, 2026, also marks Guru Ravidas Jayanti, which is a government holiday in several states. Despite this, the exchanges have confirmed that the special trading session will proceed as planned, highlighting the priority given to the Union Budget's economic significance.

Conclusion: A Key Day for the Market

The decision to hold a live trading session on a Sunday for the Union Budget 2026 reflects the event's critical importance to the Indian economy and financial markets. By aligning trading hours with the budget presentation, the BSE and NSE are facilitating a transparent and immediate market response. Investors and traders are advised to stay informed and prepare for a potentially volatile but significant trading day, as the government unveils its fiscal roadmap for the upcoming year.