Markets to Remain Open on Budget Day: Special Trading Session on February 1, 2025

Posted by Manoj Kumar January 27, 2025

Indian stock exchanges will remain operational on Saturday, February 1, 2025, as Finance Minister Nirmala Sitharaman presents the Union Budget for the financial year 2025-26 in Parliament. This special trading session is aimed at giving investors an opportunity to respond to budget announcements in real-time, as these announcements often have significant implications on various sectors and companies.

Key Details of the Special Trading Session

Participating Markets

The National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and Multi Commodity Exchange (MCX) will facilitate live trading across the Equity, Derivatives (F&O), and Commodity market segments.

Trading Timings

Equity and F&O Markets:

Pre-open Session: 9:00 AM to 9:08 AM
Normal Market: 9:15 AM to 3:30 PM

Commodity Markets:

Special Session: 8:45 AM to 8:59 AM
Normal Market: 9:00 AM to 5:00 PM

Important Settlement Considerations

Investors need to keep certain settlement-related factors in mind during this special trading session:

  1. Settlement Holiday on February 1, 2025: Credit and proceeds from sell transactions made on January 31, 2025, will not be available for trading on February 1, 2025. These will be settled on February 3, 2025.

  2. Stocks Bought on January 31, 2025: Shares purchased on January 31, 2025, will not be available for selling on February 1, 2025.

  3. Withdrawal Requests: Withdrawal requests placed after 8:00 AM on January 31, 2025, will only be processed on February 3, 2025.

This isn’t the first instance where stock markets have opened on a Saturday for budget announcements. Similar sessions were held on February 1, 2020, and February 28, 2015, allowing investors to act promptly on budget-related developments.

The Union Budget often brings about critical announcements, such as changes in tax structures, allocation of funds to various sectors, and policy reforms. These announcements can have immediate sectoral and company-specific impacts.

Key Points for Investors to Note:

  • Be prepared for increased volatility as markets react to the budget announcements.

  • Review portfolio holdings in sectors expected to be directly impacted by the budget.

  • Take note of the settlement restrictions to plan trades and withdrawals effectively.

Read circular NSE, BSE, MCX