The Union Budget 2026 is being presented today, and naturally, all eyes are on the stock market.
Investors are curious, a little nervous, and eager to know whether they should trade today and which sectors may see action.
Since the Budget is being presented on a Sunday, many are confused about whether the market is open or closed.
Here’s everything you need to know, explained simply.
Is the Stock Market Open Today on 1 February?
Yes, the stock market is open today despite it being a Sunday.
Both NSE and BSE have confirmed a special trading session for Budget Day 2026.
This is the first time since 1999 that the Union Budget is being presented on a Sunday, which is why markets are open today.
Pre-open session: 9:00 AM
Normal trading: 9:15 AM to 3:30 PM
Budget presentation: 11:00 AM
Expect sharp market movements around the time the Budget speech begins.
Important Settlement Rules You Must Understand
While trading is allowed today, today is a settlement holiday.
This point is extremely important, especially for short-term traders.
Shares bought on Friday, 30 January cannot be sold today
Shares bought today cannot be sold on Monday, 2 February
All trades done today will be settled on the next working day
Wrong planning on a settlement holiday can lead to unexpected losses, so caution is essential.
Why Budget Day Creates High Market Volatility
Budget Day is known for sharp market movements.
Over the last 25 years, markets have often moved 1% or more on this day.
Announcements related to taxes, government spending, infrastructure, and sector-specific incentives directly affect company profits.
This time, the mood is cautious because Sensex and Nifty have already fallen over 3% this month.
Sectors Likely to Be in Focus in Budget 2026
Brokerage reports suggest that the government may increase capital expenditure by around 10%.
Several sectors are expected to stay in the spotlight:
Defence
Railways and infrastructure
Power and renewable energy
Electronics manufacturing
Consumer durables
Announcements related to infrastructure spending and the PLI scheme could decide the market’s direction.
Defence Sector: Budget Favourite Once Again?
The defence sector is expected to remain a major beneficiary.
Reports suggest defence spending could rise by nearly 9% in FY27, with higher focus on drones, advanced technology, and projects for the Air Force and Navy.
Stocks like BEL, HAL, and BDL are in focus.
In the previous budget cycle, defence stocks delivered strong returns, and experts expect similar momentum this time as well.
Infra, Power and Green Energy Stocks in Spotlight
Infrastructure and capital goods stocks may benefit from higher spending on roads, railways, and power projects.
Stocks like L&T, Siemens, ABB India, Hitachi Energy, and KEC International are being closely watched.
Power and renewable energy companies such as Tata Power, NTPC, Waaree Energies, and Acme Solar could also gain if the Budget supports clean energy initiatives.
Gas companies like GAIL and Petronet LNG may also react positively.
Real Estate and Cement Stocks Could See Action
If the housing sector receives incentives, real estate stocks may see buying interest.
Companies like Godrej Properties, Prestige Group, Sobha, and Lodha Group are on investors’ radar.
In the cement space, UltraTech Cement and JK Cement could benefit from increased infrastructure and housing activity.
Expert Advice for Investors on Budget Day
Market experts warn that Budget Day can be highly volatile.
Short-term traders should trade carefully and avoid emotional decisions.
Long-term investors are advised to wait for clarity after the Budget and focus on fundamentally strong companies rather than reacting to short-term market swings.
