Investors Await Market Reaction to Union Budget Announcements
The Union Budget Day is a highly anticipated event for investors as it holds the potential to influence the stock market significantly. On Budget Day, market participants are keen to observe the government’s fiscal policies, tax reforms, and sector-specific allocations, all of which can lead to major shifts in the stock market. As February 1 approaches, traders are on alert, hoping to gauge whether the market will experience bullish momentum or succumb to bearish sentiments in response to Finance Minister Nirmala Sitharaman’s speech.
The announcements made during the Union Budget often dictate the mood on Dalal Street, with positive fiscal measures typically boosting investor confidence and negative ones resulting in market corrections. This makes the day particularly critical, as even small policy changes can have a large impact on market movements.
Stock Market to Operate as Usual on Budget Day
Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have confirmed that the stock market will be open for trading on Budget Day, February 1, which falls on a Saturday. In a circular released on Monday, the exchanges clarified that trading will proceed according to regular market hours, from 9:15 AM to 3:30 PM for equity markets. Commodity derivatives trading will continue until 5:00 PM. However, the T+0 settlement session will be suspended due to the settlement holiday.
This decision to keep the markets open aligns with previous years when the Union Budget was presented on non-working days. For instance, in 2020 and 2015, special trading sessions were conducted on Saturdays, allowing investors to immediately respond to key announcements made during the Budget. The move ensures that market participants can quickly react to any fiscal changes or sectoral policies that may influence market behavior.
Pre-market and Key Focus Areas for Investors
Ahead of the official opening, pre-market trading will take place between 9:00 AM and 9:08 AM, with the Nifty 50 and Sensex updating live during the session. Investors will be watching closely for policy changes that could impact crucial sectors like infrastructure, banking, manufacturing, and healthcare, which often experience substantial market movements based on government decisions.
The Union Budget holds great importance for shaping the economic landscape of the coming year. Market participants are particularly interested in key announcements surrounding tax reliefs, fiscal deficit targets, and government spending plans, as these will heavily influence market sentiment and investor confidence. With the Budget now presented annually on February 1 since 2017, following a change in the presentation date by former Finance Minister Arun Jaitley, this day has become a crucial one for stock market activity.
