As Finance Minister Nirmala Sitharaman gets ready for presentation of Union Budget 2026 to Parliament, investors and traders throughout India are asking a couple of things that matter to them: Is the stock market open on February 1? But the timing for this year’s Budget is peculiar: February 1, 2026, is set for a Sunday.
Traditionally, the weekend is closed in the Indian stock markets, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Budget Day is usually taken as an exception, however.
Is There A Special Trading Session?
When the Union Budget is on a Saturday or Sunday, the exchanges normally make a Special Live Trading Session. This should enable the market to respond as and when changes to major policy, such as tax reform, and sectoral allocations as covered in the Budget statement.
- Official Status: the NSE and BSE are yet to officially confirm a special session on Sunday for 2026.
- The Precedent: In 2020, as the Budget hit the floor on a Saturday, the markets held for a full session.
- Probably: In case of special session, it follows normal trading times (9:15 AM to 3:30 PM) or truncated schedule at 11 a.m. to coincide with Finance Minister’s speech.
Why The Budget Day is Important For Investors
The biggest "market-mover" of the year, the Union Budget. Investors will watch various key areas that could prompt volatility closely:
- Capital Gains Tax: Any changes to Long-Term Capital Gains (LTCG) or Short-Term Capital Gains (STCG) tax.
- STT (Securities Transaction Tax): Information on transaction costs for F&O traders.
- Fiscal Deficit Targets: Signals of the government’s goals on borrowing and the state of the economy.
- Sector Allocations: We have projected that the focus will be on Infrastructure, Defence and Green Energy this year.
What if the Market Is Set to Remain Closed for Short Term?
Should exchanges fail to hold special session on Sunday, Feb. 1, the market will respond to Budget proposals on Monday, Feb. 2, 2026. This may result in a "gap-up" or "gap-down" opening – with some levels of crazy volatility in the first hour of trading on Monday.
Expectations for Budget 2026
Markets predict the 2026 Budget will concentrate heavily on middle-class tax relief and AI-based infrastructure. In light of the Sensex lately near record highs, any positive surprise in income tax slabs may lift the Nifty 50 beyond new psychological thresholds.
