Budget day is like a high-stakes earnings call for the entire economy, with every word from the Finance Minister so crucial that it can send stocks soaring or crashing.
Investors are on their toes looking for cues to tell them if market bulls will be dominant or will bearish sentiments take over.
The announcements made during the Budget can have an impact on Dalal Street, with positive measures boosting investor confidence and negative ones causing market corrections.
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But will Sensex and Nifty open for trading on February 1, which is a Saturday?
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have confirmed that the stock market will remain open for trading on Budget day.
In a circular issued on Monday, both exchanges announced that trading will take place as per regular market hours. This means the equity market will function from 9:15 AM to 3:30 PM, while commodity derivatives trading will continue until 5:00 PM. However, the T+0 settlement session will remain suspended due to the settlement holiday.
The decision to keep the markets open aligns with past instances where trading was allowed on Saturdays for Budget announcements. Similar special trading sessions were held in 2020 and 2015 when the Union Budget was presented on a non-working day. This step ensures that investors can respond immediately to the government’s fiscal policies, tax reforms, and sectoral allocations that often influence market trends.
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Pre-market trading will take place between 9:00 AM and 9:08 AM, and the benchmark indices Nifty 50 and Sensex will update live throughout the session.
Market participants will closely track Finance Minister Nirmala Sitharaman’s Budget speech for policy changes that could impact different sectors.
The Union Budget is a crucial event for the stock market as it sets the economic direction for the year ahead.
Investors will be looking for key announcements related to infrastructure, banking, manufacturing, and healthcare, which are expected to experience significant movement based on policy measures. Tax reliefs, fiscal deficit targets, and government spending plans will also play a vital role in shaping market sentiment.
Historically, the Budget was presented on the last working day of February. However, in 2017, then-Finance Minister Arun Jaitley shifted the date to February 1 to allow more time for policy implementation within the financial year. Since then, the Union Budget has been presented on February 1 each year.