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Markets Open Sunday for Budget Day
Indian stock markets, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), will conduct trading on Sunday, February 1, 2026. This unusual trading day coincides with the presentation of the Union Budget for the fiscal year 2026-27, enabling investors to react immediately to the government's economic and fiscal announcements.
Budget Day Trading Anomaly
Both exchanges have issued circulars confirming the special trading session. Trading will proceed as per standard market timings on this Sunday. This move mirrors last year's decision, when markets also operated on Saturday, February 1, 2025, for the previous budget.
Analyst Views Emerge
Financial institutions are offering their outlooks for the upcoming budget. Morgan Stanley projects the central government's fiscal deficit to stand at 4.2% of the Gross Domestic Product (GDP) for FY27. They anticipate a moderation in India's debt-to-GDP ratio to 55.1%. Key focus areas are expected to include capital expenditure for job creation, targeted social sector spending, and a push for structural reforms.
The brokerage firm expects domestic demand to be the primary driver of GDP growth. This comes amidst ongoing global uncertainties related to trade tariffs and geopolitical tensions that continue to weigh on external demand. The strength observed in December 2025 high-frequency data further reinforces the outlook for sustained domestic demand.
Market Snapshot
Meanwhile, domestic equity benchmarks concluded the past week on a positive note. The Nifty 50 index closed with a gain of 0.64%, settling just below the 25,700 mark. The BSE Sensex recorded a 0.53% increase, closing at 83,570.35.
It is important to note that trading in the T+0 Settlement Session and Auction Session for settlement default will not be conducted on Sunday, February 1, 2026, as it will be considered a settlement holiday for these specific sessions.