On 1 February 2026, Finance Minister Nirmala Sitharaman will present the Union Budget in the Lok Sabha with the speech scheduled for 11 am. For investors, Budget day is also about how quickly markets can react, because a single policy line can shift sentiment across banks, infra, consumption, and taxes.
This time, Budget day falls on a Sunday, when markets are usually closed. So the question doing the rounds is simple and fair: “Is the Indian stock market open on Budget day?” Read on to understand what is open, what stays closed, and what this means if you plan to trade or stay invested.
Is the Indian stock market open on Budget Day?
Yes. Trading will run on Sunday, 1 February 2026. The exchanges have scheduled a special trading session timed to the Union Budget presentation.
This means price discovery happens immediately to policy announcements, rather than being deferred to the next working day.
Sunday Special Trading Session- February 1,2026
Markets will operate on Sunday, 1 February 2026. Both the bourses have issued circulars confirming a live trading day for the Union Budget presentation, and timing follows the usual schedule.
The NSE circular dated 16 January 2026 sets the pre-open and normal market hours for the session.
| Market phase | Start time | End time | Note |
| Pre open | 09.00 hrs | 09.08 hrs | Random closure in the last one minute |
| Normal market | 09.15 hrs | 15.30 hrs |
BSE also keeps its routine hours. It’s 16 January 2026 notice, number 20260116-33, declares the day special and confirms BSE indices will be calculated.
Trading Timings And Market Sessions Feb 1, 2026
As noted above, the equity market follows standard hours, so the core session runs like a regular trading day.
Other market windows also run alongside the main session, which matters if you use block deals or deal in less liquid securities. Here is the timing for NSE.
| Other exchange windows | Start | End | Note |
| Block deal session 1 | 08.45 hrs | 09.00 hrs | |
| Special pre-open session for IPO and relisted securities | 09.00 hrs | 09.45 hrs | Random closure in the last ten minutes |
| Call auction illiquid session | 09.30 hrs | 15.30 hrs | Random closure in the last one minute of order entry between the 44th and 45th minute |
| Block deal session 2 | 14.05 hrs | 14.20 hrs | |
| Post closing session | 15.40 hrs | 16.00 hrs | |
| Trade modification cut-off time | 16.00 hrs | 16.15 hrs | Cut off at 16.15 hrs |
The “T0” session will not be scheduled for trading on 1 February 2026 due to a settlement holiday. As a result, trades executed that day follow the regular settlement cycle rather than same-day settlement.
Commodity dealing also runs on the day, with a longer window vis-à-vis equities, and clear cut-offs for controls and edits. On Sunday, MCX trades from 09:00 hrs to 17:00 hrs, and NCDEX trades 10:00 hrs to 17:00 hrs.
MCX has a short special session first, followed by the normal trading session.
| Session | Start | End |
| Special session | 08:45 hrs | 08:59 hrs |
| Trading session | 09:00 hrs | 17:00 hrs |
| Client code modification | 09:00 hrs | 17:15 hrs |
NCDEX with pre-open from 09:45 hrs and client code modification allowed till 17:15 hrs.
Why does the stock market remain open on Budget Day?
Markets stay open on the Union Budget delivery to support real-time price discovery while the speech is live. The Union Budget sets out the financial blueprint for the upcoming year, which can impact sentiment quickly. Exchanges keep trading open so participants can respond immediately.
If trading were deferred, reactions would be delayed, uncertainty would build & volatility could intensify at the reopen. By allowing a Sunday session, the market absorbs information smoothly, and prices reflect the latest announcements transparently
How the Union Budget 2026 impacts the stock market
Share prices adjust when the Finance Minister announces changes in taxes, spending, subsidies or fiscal deficit targets that potentially impact the future profits of investors. Here are a few historical moves that show how markets can react sharply or barely move at all:
| Date | Sensex move | Nifty move | What drove the move |
| 1 Feb 2021 | Up 5% | Up 4.7% | Growth focused measures after the pandemic shock |
| 1 Feb 2020 | Down 2.4% | Down 2.5% | Fiscal stance concerns and duty changes hit key stocks |
| 6 Jul 2009 | Down 5.8% | Down 5.8% | Fears around government finances and deficit risk |
| 1 Feb 2025 | Up 0.01% | Down 0.11% | Tax relief offset by worries on capex ambition |
The impact of the Budget 2026 will depend on whether the announcements match what investors already expect. If the Budget gives more support than expected, markets can rise, and if it gives less than expected, markets can fall, even if the Budget is not “bad”.
On 29-January-2026, Nifty 50 was down 0.61% & Sensex was down 0.71% as attention moved towards the Sunday Budget session. One Budget 2026 expectation is that the government may keep spending controlled and aim to reduce the fiscal deficit to 4.2% of GDP next year, compared with a 4.4% target this year, while still focusing on long-term infrastructure like roads and railways. That expectation matters because it influences how investors position themselves before the speech.
What investors should track on Budget Day
Here are the fundamentals worth watching during the speech.
- Watch the fiscal deficit target, revised estimate, then test the nominal GDP and revenue assumptions
- Check gross market borrowing and T-bill signals, because bond yields can move banks and rate-sensitive stocks quickly
- Track capex size and where it lands across roads, railways, defence, energy, housing, power and capital goods
- Follow tax changes that shift behaviour, personal slabs and standard deduction, capital gains & STT and any FPI relief
- Note subsidies such as food and fertiliser, plus disinvestment signals that can tilt PSU themes
- Keep an eye on India VIX, bank index direction and market breadth, then read the Finance Bill dates carefully
Should investors trade on Budget Day?
Feb 1 trading tends to be more about price discovery than long-term conviction. Over the past 15 years, Nifty’s average move on the day itself has been modest, while the week after has delivered much larger average moves, suggesting the real repricing often happens after details sink in.
The session can still feel noisy because moves are often stock-specific, especially alongside earnings season. Moreover, mechanics also shape participation, which many readers miss on first glance. In the 1 February 2026 special session, BTST (buy on 30 January, sell on 1 February) is restricted by some brokers because both 30 January and 1 February trades are scheduled to settle on 2 February, and the NSE has said the T0 session will not run due to a settlement holiday.
Conclusion
This year, markets will be open while the Budget speech is happening. The first reaction can be instant, while a clearer direction often emerges after the details are read. The Sunday session brings price discovery forward, then the next few sessions show how the message is absorbed across sectors.
