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NEW DELHI: Stock markets indices were trading level successful the Sunday’s peculiar trading league up of the Union Budget 2026, reflecting cautious capitalist sentiment.The Nifty 50 was astatine 25,302 . 05, down astir 16 points, portion Sensex was up by implicit 18 points astatine 82,301.91 , arsenic astatine 9.35 am.The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) had issued abstracted circulars confirming that trading volition proceed arsenic accustomed connected Budget day. Both exchanges said marketplace hours volition stay unchanged, pursuing the modular docket for a regular trading session.As per the notices, the pre-open league ran from 9 americium to 9:08 am, followed by mean equity marketplace trading from 9:15 americium to 3:30 pm.The BSE added that portion cardinal segments specified arsenic equity, futures and options, and commodity derivatives volition run normally, definite specialised sessions volition beryllium suspended.
“Trading Members whitethorn enactment that trading successful the T+0 Settlement Session and Auction Session for colony default volition not beryllium conducted connected Sunday, February 01, 2026,” the speech said.Trading connected a Sunday is uncommon for Dalal Street, arsenic some exchanges typically stay unopen connected weekends and designated nationalist holidays. February 1 volition truthful beryllium among the uncommon Sundays erstwhile markets are unfastened for regular trading.Talking astir capitalist expectations, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “Investors don’t person expectations of immoderate large taxation reliefs successful this Budget since the 2025 Budget delivered immense income taxation reliefs.
Some tweaking of definite taxes is likely. If determination is an summation successful exemption for semipermanent superior gains taxation from Rs 1.25 lakhs presently to a higher bounds that would beryllium a positive.
From the marketplace perspective, a fiscally prudent, growth-oriented Budget is desirable. There are rumours of exemption from semipermanent superior gains taxation for definite categories of FIIs. If this happens, it tin trigger a rally successful the market.”Further mentioning sectors that’ll beryllium successful focus, helium added, “Higher allocation for defence is simply a fixed and, therefore, defence stocks volition proceed to beryllium successful focus. A thrust country of the Budget tin beryllium exports, peculiarly manufacturing exports which the Economic Survey harps on. Therefore, export segments are apt to beryllium connected the radar of investors. Announcements relating to PSU slope mergers; disinvestment successful PSUs volition beryllium keenly watched.
Aside from the Budget, the clang successful precious metallic prices whitethorn bring investors backmost into equity."A look astatine marketplace trends implicit the past decennary shows that Budgets person sparked beardown rallies, but galore person led to muted moves oregon adjacent declines.Markets mostly respond good erstwhile the Budget emphasises growth, infrastructure spending and taxation stability. In 2017, for instance, past concern curate Arun Jaitley avoided large taxation hikes and offered alleviation to the mediate class.
Investors welcomed the approach, with the Sensex rising astir 1.7 per cent and the Nifty gaining astir 1.8 per cent , 1 of the stronger Budget Day performances of that period.Another standout came successful 2021, erstwhile Nirmala Sitharaman presented the Budget successful the aftermath of the Covid-19 shock. With a wide propulsion towards economical recovery, higher superior expenditure, healthcare and infrastructure, markets rallied sharply.
The Sensex jumped implicit 2 per cent and the Nifty climbed astir 2.7 per cent, marking 1 of the champion Budget Day gains successful caller years.But not each Budget has cheered investors. In 2016, higher dividend taxation dampened sentiment, and the Sensex ended the time successful the red. In 2018, the instauration of semipermanent superior gains taxation connected listed equities and equity communal funds caught markets disconnected guard. Although indices slipped lone modestly connected the day, they fell astir 6.8 per cent implicit the pursuing sessions.
The 2023 Budget triggered a mostly level reaction, arsenic it maintained fiscal subject but lacked big-bang reforms to excite traders.The July 2024 Budget besides drew a cautious response. Changes related to superior gains taxation amazed immoderate investors. While the absorption was not severe, some the Sensex and Nifty ended somewhat lower, underscoring however unexpected taxation measures tin measurement connected sentiment adjacent erstwhile the broader macro representation is stable.Also historically, volatility aft the Budget has been common, and one-month returns person often been mixed.As the federation heads into the Union Budget 2026, marketplace conditions are already unsettled. Equity indices person pulled backmost from caller highs, overseas portfolio investors person been nett sellers, and planetary factors specified arsenic involvement rates, geopolitical tensions and commercialized policies proceed to power sentiment. In this backdrop, crisp moves connected Budget Day are astir inevitable.
