Stock market to remain open on union budget day

The markets will remain open for trading on Sunday, February 1, 2026, despite it being a weekend. The decision comes in light of the Union Budget 2026 presentation, a day that traditionally sees heightened volatility, sharp reactions, and heavy investor participation. Here’s everything investors and traders need to know.

Why is the Market Open on February 1, 2026?

February 1 marks the presentation of the Union Budget, one of the most important economic events in India. Budget announcements often have an immediate impact on:

  • Equity and commodity markets
  • Sectoral stocks (banking, infra, PSU, FMCG, defence, etc.)
  • Investor sentiment and short-term volatility

To ensure smooth price discovery and uninterrupted trading, NSE, BSE and MCX has decided to keep markets open even though February 1, 2026 falls on a Sunday.

NSE Trading Timings on Budget Day (February 1, 2026)

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

Commodity Market Timings

Particulars Timings
Special Session 08:45 a.m. to 08:59 a.m.
Trading Session 09:00 a.m. to 05:00 p.m.
Client Code Modification Session 09:00 a.m. to 05:15 p.m.

*Random closure in the last one minute of the pre-open session.

Other Market Sessions on February 1, 2026

Session

Start Time

End Time

Block Deal Session-1

8:45 hrs

9:00 hrs

Special Pre-Open Session
(IPO & Relisted Securities)**

9:00 hrs

9:45 hrs

Call Auction Illiquid
Session#

09:30 hrs

15:30 hrs

Block Deal Session – 2

14:05 hrs

14:20 hrs

Post-Closing Session

15:40 hrs

16:00 hrs

Trade Modification Cut-off

Up to 16:15 hrs

 

No T+0 Settlement on Budget Day

One important clarification from NSE:

  • The T+0 settlement session will NOT be available on February 1, 2026
  • Reason: Settlement holiday

This means all trades executed on Budget Day will follow the regular settlement cycle instead of same-day settlement.

What This Means for Investors and Traders

For Traders

  • Expect high intraday volatility driven by budget announcements
  • Sector-specific stocks may react sharply to policy changes
  • Liquidity is expected to remain strong throughout the session

For Long-Term Investors

  • Budget Day often creates short-term noise, not long-term trends
  • Ideal time to observe policy direction rather than chase quick moves

For IPO & Block Deal Participants

  • Dedicated special pre-open and block deal sessions will function as usual
  • Institutional activity is likely to be closely watched

Key Takeaway

Even though February 1, 2026 is a Sunday, markets will function normally due to the Union Budget presentation. With standard trading hours, special sessions, and high expected volatility, investors should plan trades carefully, while keeping in mind that T+0 settlement will not be available. As always, staying informed about market timings and settlement rules is just as important as tracking budget headlines.

Source: NSE Circular dated January 16, 2026 | MCX Circular dated January 16, 2026