Stock market timings on Budget day
On Budget day, pre-market trading will begin at 9:00 AM and continue until 9:08 AM, followed by equity market trading from 9:15 AM to 3:30 PM. Commodity derivatives trading will remain open until 5:00 PM.
However, despite the market operating as usual, February 1, 2025, is a Settlement Holiday, meaning trades and fund transactions from January 31 and February 1 will be settled on Monday, February 3, 2025. The T+0 settlement session will also remain suspended for the day.
Why is the stock market open on Budget day?
The decision to keep the market open on a Saturday aligns with past practices when markets opened on Saturdays for budget announcements, notably in 2020 and 2015. The decision ensures investors can react in real time to fiscal policy measures, tax reforms, and sectoral allocations that often drive market movements.
Historically, the Union Budget was presented on the last working day of February. However, in 2017, then-Finance Minister Arun Jaitley advanced the date to February 1, allowing the government additional time to implement policies within the financial year. Since then, the Union Budget has been presented on February 1 annually.The most recent full-fledged Union Budget was presented by Sitharaman on July 23, 2024, following the Lok Sabha elections. Before that, an interim budget was tabled on February 1, 2024, covering essential government expenditures.Also read | Time to buy the dip? Stock market indicates oversold level
The Union Budget is a significant event for the markets, influencing economic direction and shaping investment sentiment. Announcements related to fiscal policies, tax reforms, and sector-specific allocations often lead to immediate market movements.
As Sitharaman delivers her eighth consecutive budget, analysts and investors will be closely watching the proposals, particularly in sectors like infrastructure, banking, manufacturing, and healthcare, which could see heightened volatility.
Also read | Small and midcap stocks down 15% in 4 months, Nuvama shares 20 bottom-up ideas
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