Union Budget 2026: Stock markets to remain open on February 1; key details inside

India’s stock markets will remain open for trading on Sunday, 1 February 2026, as Finance Minister Nirmala Sitharaman presents the Union Budget 2026. Both the National Stock Exchange (NSE) and BSE Ltd. will operate as per standard market timings, according to circulars issued by the exchanges.

The pre-open session will start at 9:00 am for eight minutes, followed by normal trading from 9:15 am to 3:30 pm. However, the NSE circular noted that the “T0” session will not be scheduled on February 1 due to the settlement holiday.

This year’s Union Budget for FY 2025-26 will be the ninth consecutive budget presented by Nirmala Sitharaman. Ahead of the budget, the Economic Survey will be tabled by Chief Economic Advisor V Anantha Nageswaran on 29 January, as per the proposal by the Cabinet Committee on Parliamentary Affairs (CCPA).

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The Parliament’s Budget Session will be held in two phases, starting 28 January. The first phase will conclude on 13 February, and the second phase is scheduled from 9 March to 2 April.

Notably, the 1 February budget presentation will mark a rare Sunday sitting of Parliament, though the incumbent government has followed this post-2017 calendar, presenting the budget on 1 February every year regardless of the day. Sunday sittings have occurred in special circumstances in the past, including in 2012 and 2020.

Market experts say Dalal Street’s trading on a Sunday will allow investors to react immediately to budget announcements, especially given the volatility that budget measures typically trigger.

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Market veteran and Elixir Equities Director Dipen Mehta said the upcoming Union Budget may turn out to be a “non-event” for markets, but added that this could work in favour of investors and corporate India by ensuring policy stability.

Speaking to Zee Business Managing Editor Anil Singhvi, Mehta said he had rarely seen such low expectations from the Budget despite nearly 30 years of experience in capital markets.

Mehta said markets are likely to respond positively even if there are no major policy surprises, as long as macro fundamentals continue to improve. He pointed to lower fiscal deficit trends, stable taxation and improving economic indicators as supportive factors.

Mehta said sentiment could improve if there is any relief in taxes, particularly on capital gains, dividends or buybacks. “If taxes are reduced, especially on capital gains, dividends or buybacks, sentiment can improve. The current taxation on buybacks is quite heavy,” he said.

He also said increased government spending on select sectors could benefit stocks if the Budget signals a clear sectoral focus. He added that the government has a track record of following through on its Budget announcements.

On defence stocks, Mehta said the sector is well-researched and largely understood, with limited surprise potential. He cautioned that valuations are rich and earnings volatility cannot be ruled out in some companies.

He advised investors to look beyond last year’s winners and focus on laggard sectors that could perform better in 2026. Mehta said he remains invested in select renewable stocks, particularly in rooftop solar, citing rising consumer awareness and entry barriers.

He also turned constructive on IT services, calling it a laggard sector with long-term potential driven by artificial intelligence. Mehta said AI-led revenue growth could become a key earnings driver for software companies over the next two to three years.

“AI is here to stay, and over time, it can lead to earnings growth and valuation expansion in the IT sector,” he said.