Introduction

The National Stock Exchange (NSE) and the BSE have announced that they will remain open for trading on Saturday, February 1, 2025, to coincide with the presentation of the Union Budget 2025. Both exchanges will operate from 9:15 AM to 3:30 PM during regular trading hours. The commodity derivatives segment will also be open for trading in the morning session.

Indian stock exchanges normally remain closed on Saturdays and Sundays, but special trading sessions are scheduled during significant events.

Finance Minister Nirmala Sitharaman will present her second budget following the 2024 general elections. The budget will focus on transitioning India toward its “Viksit Bharat” vision under “Amrit Kaal.” It is expected to emphasize capital expenditure and fiscal discipline to stimulate growth, particularly in key sectors like infrastructure, manufacturing, and construction. 

Reports suggest the Centre may maintain its capital expenditure at around 3.4% of nominal GDP for 2025-26, aligning with the current fiscal year’s target to support economic growth amid declining state spending.

Why Will Markets Remain Open?

The decision to keep markets open on Saturday, February 1, 2025, stems from the critical importance of the Union Budget 2025 for the economy and financial markets. During the budget live session, real-time announcements directly impact stock prices as traders react to tax proposals, infrastructure spending, and economic policies.

The India budget for the fiscal year 2024-25 holds particular significance as it aims to address key economic challenges and chart the course for growth. Keeping the markets open ensures that investors and traders can respond to policy changes immediately, preventing speculation and delayed price adjustments.

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Impact on Investors and Traders

The Union budget of India is one of the most awaited financial events, significantly influencing the stock market and its participants. The live trading session on February 1, 2025, during the budget presentation, offers investors and traders a unique opportunity to react immediately to budget updates that could shape the market’s direction.

1. Market Volatility

Budget day is synonymous with heightened volatility in the stock market today, as announcements related to tax policies, government spending, and sectoral incentives lead to swift price movements. Traders need to prepare for sharp fluctuations, especially in indices like the stock market Sensex.

2. Sectoral Impact

Specific sectors such as infrastructure, manufacturing, agriculture, and technology often see heightened activity due to budget proposals. Investors closely monitor these sectors to identify potential gainers or losers based on budget allocations and policies.

3. Opportunities for Short-Term Gains

For day traders and short-term investors, the immediate response to the budget announcements can create opportunities for significant profits. However, it also amplifies the risk of losses if the market reacts unexpectedly to the budget updates.

4. Long-Term Investment Decisions

Long-term investors view the union budget of India as a blueprint for economic growth. Policies aimed at fiscal prudence, capital expenditure, and reforms can influence decisions on portfolio allocation and sectoral preferences.

5. Foreign Investor Sentiment

The budget’s focus on stability and reforms can impact foreign investor confidence. A favorable budget can attract foreign institutional investors, boosting indices like the stock market Sensex.

BSE, NSE Holidays in 2025

The BSE and NSE have released the stock market holiday calendar for 2025, listing 14 non-trading days. The first holiday is scheduled for February 26, 2025, on account of Mahashivratri.

On these holidays, trading activities across equity, equity derivatives, and SLB segments will remain closed. Consequently, major domestic indices like the BSE Sensex and NSE Nifty 50 will also pause trading.

Despite these closures, events like the budget live session for the Union Budget 2024-25 underline the importance of operational days, allowing India’s stock market to align with global events and global stock indices trends.

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Conclusion

The decision to keep the stock market open on Saturday, February 1, 2025, for the budget live session highlights the significance of the Union Budget 2024-25 in shaping India’s economic trajectory. This rare trading opportunity allows market participants to react in real-time to policy announcements, ensuring alignment with global stock indices and preventing speculation-driven volatility. 

By understanding the market’s dynamics and preparing strategically, investors and traders can effectively navigate this pivotal event and capitalize on emerging opportunities.