Equity market to remain open for Budget 2026

N
Nilesh A |
  Equity market to remain open for Budget 2026

The NSE and Bombay Stock Exchange BSE will be open for a special live trading session on Sunday, February 1, 2026. This change from the standard weekend closure is scheduled to accommodate the presentation of the Union Budget 2026-27 by the Finance Minister. The decision allows real-time price discovery and allows market participants to react immediately to policy announcements, which reduces volatility on Monday.

Market Context and Rationale: The decision to conduct a full trading session stems from the significance of the Union Budget as a major economic event.

Sectoral Impact: Budget announcements often trigger sharp reactions in specific sectors such as banking, infrastructure, defense, and FMCG. A live session allows these adjustments to occur in a controlled environment.

Volatility Management: Historically, postponing the market reaction to the subsequent Monday often results in a gap-up or gap-down opening. A Sunday session reduces this impact and allows smoother price discovery.

Equity Market Timings

Session Start Time End Time
Pre-Open Session* 09:00 hrs 09:08 hrs
Normal Market Session 09:15 hrs 15:30 hrs

The pre-open session will close randomly within the final one minute.

Settlement Cycle Changes: The NSE circular provides clarifications regarding the settlement of trades executed during this special session.

No T+0 Settlement: The option for T+0 settlement will not be available on February 1, 2026.

All trades executed on Budget Day will follow the standard settlement cycle. This is due to February 1 being a settlement holiday for the clearing corporations, despite the trading floor being active.


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