Stock Market Open on 1 February 2026: What Budget Day Means for Investors
The Indian stock market rarely opens on a Sunday. But 1 February 2026 is an exception.
As the Union Budget 2026 is scheduled to be presented on Sunday, both NSE and BSE will remain open for trading, allowing investors to react to policy announcements in real time. This special trading session has significant implications for traders, long-term investors, and first-time market participants.
If you are wondering why markets are open, how trading will work, and what strategy makes sense on Budget Day, this guide breaks it down clearly.
Why Is the Stock Market Open on 1 February 2026?
The Union Budget is one of the most market-moving events in India. It directly impacts taxation, government spending, fiscal deficit, capital expenditure, and sector-specific policies.
When the Budget falls on a weekend, Indian exchanges open markets to avoid a gap between announcements and price discovery.
Key reasons behind the Sunday trading session
- Immediate market reaction to Budget announcements
- Transparent price discovery without overnight uncertainty
- Alignment with global markets tracking India’s policy direction
This is not unprecedented. Indian markets have opened on Budget Sundays in the past, and the move has been well received by institutional and retail investors alike.
Trading Timings on 1 February 2026
The trading session on Budget Day will follow normal market timings.
Expected schedule
- Pre-open session: 9:00 AM to 9:15 AM
- Regular trading session: 9:15 AM to 3:30 PM
Equity markets will remain operational, and most brokerage platforms will function as usual. Investors should ensure their trading apps are updated and accounts are active before the session begins.
What Happens in Markets on Budget Day?
Budget Day trading is unlike a normal session. Volatility is usually higher, and sector rotation happens fast.
Before the Budget speech
Markets often trade cautiously. Volumes remain low as participants wait for clarity.
During the Budget speech
Sharp moves are common. Headlines related to:
- Income tax slabs
- Capital gains taxation
- Infrastructure spending
- Banking and PSU reforms
can trigger instant reactions.
After the speech
Markets reassess details. Sometimes the initial reaction reverses once fine print is analysed.
A classic example is when headline announcements appear positive, but fiscal math or execution risks lead to profit booking later in the session.
Sectors Likely to Be in Focus on Budget Day
Banking and Financial Services
Any change in credit growth support, PSU bank recapitalisation, or financial inclusion measures can move banking stocks sharply.
Infrastructure and Capital Goods
Government capex allocation often decides the trend for infra, cement, steel, and engineering stocks.
Defence and Manufacturing
With Make in India and export push themes gaining traction, defence stocks remain sensitive to policy cues.
Power and Energy
Renewables, grid stability, and storage policies can impact power utilities and energy companies.
For long-term investors, Budget Day helps identify policy-backed themes rather than short-term trades.
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