New Delhi, February 1: The stock market is usually closed on Sundays but today, after 26 years, such an opportunity has arisen when the stock market will be open all day on Sunday, just like on a normal working day. Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) will operate as usual. The reason for the stock market opening on Sunday is the Union Budget being presented today.
The Central Government will be presenting the Union Budget on a Sunday for the first time since 1999. In fact, the practice of presenting the Union Budget on February 1 was started in 2017. All Union Budgets, except the interim budget, have been presented on February 1. Before this, the Central Government last presented the Union Budget on a Sunday on February 28, 1999. At that time, it was traditional to present the Union Budget every year on February 28. Despite February 28, 1999, being a Sunday, Yashwant Sinha, the Finance Minister of the then Atal Bihari Vajpayee government, presented the budget on that day.
The budget has a direct impact on the stock market. Major announcements related to government expenditure, taxes, manufacturing, infrastructure, banking, and capital markets are made on this day. Therefore, normal trading traditionally takes place to allow for the market’s quick reaction to the budgetary provisions. If the market is closed for any reason on Budget Day, investors will have to wait until the next trading day to express their reactions to the budgetary provisions. This could lead to changes in market conditions.
The BSE and The NSE have clarified through their circulars that there will be a special live trading session on the day of the budget presentation. However, there will be no difference for investors. Trading procedures and all rules will remain the same as on normal days. Market timings will remain normal on Sunday as well. The normal trading session will be from 9:15 a.m. to 3:30 p.m. This means investors will be able to trade during and immediately after the budget speech.
The budget speech typically begins at 11 a.m., which is when market activity picks up. This stock market decision will be a significant benefit to investors. They may change their strategies as soon as the budget is announced. Some may book profits, while others may take steps to avoid losses. This day could be particularly important for short-term traders.