Markets Open on Saturday, February 1 for Union Budget 2025

resr 5paisa Research Team

Last Updated: 13th February 2025 - 04:30 pm

2 min read

The Union Budget 2025 is right around the corner, set for February 1—this time, on a Saturday. Normally, financial markets take the weekend off, but this year is different. The stock market will stay open, with equity trading running until 3:30 PM and commodity derivatives trading extended until 5 PM. This gives investors a chance to react in real time to major budget announcements.

Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have confirmed that trading will go on as usual on Budget Day, February 1, 2025. That means the regular market hours—9:15 AM to 3:30 PM—will stay in place. Commodity derivatives trading will also be active in the morning session.

Finance Minister Nirmala Sitharaman will be presenting her second full budget since the 2024 general elections. This year, the focus is expected to align with India’s long-term vision of Viksit Bharat during the Amrit Kaal phase. Notably, this will be Sitharaman’s eighth consecutive Budget presentation—a milestone in itself.

Analysts predict a strong push for capital expenditure while maintaining fiscal discipline. With recent signs of economic slowdown, there’s growing speculation that the Budget will prioritize key sectors like infrastructure, manufacturing, and construction to boost growth.

Sources also suggest that the government is likely to keep capital expenditure at around 3.4% of nominal GDP for the 2025-26 fiscal year, matching the current target. The goal? To keep the economy on track, especially as state spending has been tapering off.

Capital Market Segment: Trading Timings and Sessions

The NSE has confirmed that the capital market segment will operate as per standard trading hours:

  • Pre-Open Session: 09:00 AM – 09:08 AM
  • Regular Trading: 09:15 AM – 03:30 PM
  • Block Deals & Call Auctions: Arranged to accommodate heightened trading activity following Budget announcements.

Futures & Options (F&O) Segment: Trading Schedule

The F&O segment will adhere to its usual trading hours:

  • Market Open: 09:15 AM
  • Market Close: 03:30 PM
  • Trade Modifications Deadline: 04:15 PM

Commodity Derivatives Segment: Trading Hours

Commodity derivatives trading will remain available, allowing investors to adjust positions based on Budget-related market movements:

  • Trading Hours: 09:00 AM – 05:00 PM
  • Trade Modifications Permitted Until: 05:15 PM

Why Do Exchanges Keep the Market Open?

Immediate Market Response: The Union Budget influences multiple sectors, businesses, and the overall economy. Keeping the market open enables investors to react promptly to policy changes, tax amendments, and government spending plans, facilitating efficient price discovery.

Managing Investor Sentiment: If trading were to remain closed until Monday, it could result in accumulated volatility and increased speculation, leading to market uncertainty. Allowing trading on Budget Day provides a real-time platform for adjustments, helping to moderate extreme market reactions.

Global Market Synchronization: Since foreign investors actively trade in Indian markets, keeping the exchange open ensures alignment with global trading practices. This not only reflects India's economic responsiveness but also minimizes arbitrage opportunities.

In conclusion, the Union Budget 2025’s impact goes beyond economists and policymakers. It shapes business decisions, taxation policies, government programs, and even household budgets. People are eager to see how it addresses pressing concerns like inflation, job creation, and overall economic stability.
 

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