Bhopal: The National Stock Exchange (NSE) has officially confirmed that trading will continue as normal on the day of the Union Budget presentation. There will be no special trading holiday or early closure for the Budget session.
In a circular issued today, the NSE clarified:
“Trading in the equity, equity derivatives, currency derivatives, interest rate derivatives and commodity derivatives segments shall remain open on the Union Budget day as per the regular market timings.”
The decision aligns with the long-standing practice followed by both NSE and BSE. The Union Budget is treated as a regular working day for the capital markets, unlike major national holidays (e.g., Republic Day, Independence Day, Diwali) when trading is suspended.
Key Timings on Budget Day (Tentative – Subject to Final Circular)
- Pre-open session: 9:00 AM – 9:15 AM
- Normal market hours: 9:15 AM – 3:30 PM
- Closing session: 3:40 PM – 4:00 PM (as usual)
No changes have been announced for block deals, call/put auctions, or the post-market closing session.
Historical Context
The Indian stock market has remained open during the Union Budget presentation every year since the early 2000s (with very few exceptions during extreme events like COVID-19 lockdowns). Both exchanges believe that keeping the market open allows investors to react in real-time to fiscal announcements, taxation changes, capital market reforms, and sector-specific measures.
Market Expectations for Budget Day 2026
Market participants expect high volatility on Budget day, especially in:
- Banking & financial services (taxation, capital gains, dividend distribution)
- Infrastructure & capital goods (capex announcements)
- FMCG & consumer discretionary (duty changes on essentials/luxury)
- Auto & EV (customs duty, PLI extensions)
- Defence & PSU stocks (budgetary allocations)
Traders and investors are advised to keep strict stop-losses and avoid excessive leverage due to potential sharp swings during and after Finance Minister’s speech (usually 11:00 AM).
Conclusion
The NSE’s confirmation ensures continuity and transparency for investors. The Union Budget 2026 will be presented in Parliament on February 1, 2026 (Saturday), and both NSE and BSE will function normally, allowing seamless price discovery of fiscal policy changes.
Market participants are now closely watching pre-Budget expectations, sectoral allocations, and potential tax reforms that could influence sentiment on the day.
