NSE to conduct a special trading session on 1st February for Union Budget

In 2025, the Union Budget, like every other year, will be presented on 1st February. However, this time around, it falls on Saturday, and markets are closed on the weekends. Let us look at the details.

Market to remain open on 1st February

The National Stock Exchange (NSE) has released a circular that communicated that it will conduct a special session on Saturday, February 1, 2025, on account of the presentation of the Union Budget. The exchange will follow the standard market timing, which means a pre-open session to be held from 9:00 am to 9:08 am. After this, the market will remain open for trading from 9:15 am to 3:30 pm. It is a settlement holiday. It means that a T+0 settlement will not take place.

Is this the first time the exchange is conducting a special session?

No, this is not the first time exchanges will remain open when Union Budget Day fell over the weekend. In 2020, the exchanges conducted a live trading session on Saturday, February 1. Similarly, on 28 February 2015 (Saturday), the market remained open due to the presentation of the Union Budget.

Why are exchanges keeping the market open?

Here are some reasons why exchange keeps the market open:

• Timely Market Reaction: The Union Budget has implications for various sectors, companies, and the economy as a whole. An open market allows investors to respond to policy changes, tax reforms, and expenditure plans without delay, ensuring efficient price discovery.
• Investor Sentiment Management: If markets remain closed until Monday, it could lead to pent-up volatility and speculation, creating uncertainty. Allowing trading on the same day as the Budget presentation helps smooth out extreme reactions by providing a real-time platform for adjustments.
• Global Market Alignment: With foreign investors participating in Indian share markets, immediate trading aligns India with global practices, showcasing the economy’s responsiveness and reducing arbitrage opportunities.

Union Budget: A Recap

Finance Minister Nirmala Sitharaman will present the Union Budget for the eighth consecutive year. The Department of Economic Affairs, under the Finance Ministry, prepares the annual budget, showcasing the nation’s economic strengths. Additionally, the budget outlines the government’s plans for expenditure, taxation, and welfare initiatives.

On February 1, 2024, FM announced the interim Union Budget. The Nifty 50 ended lower by 0.13%. On July 23, 2024, the final Union Budget was announced by Nirmala Sitharaman. The Nifty 50 ended the session 0.12% lower after a volatile session.

Before you go

Conducting a special trading session is not new. Exchanges have historically opened for special trading sessions during significant events like Budgets or major economic announcements, maintaining consistency in market operations.