Budget Sunday Blitz: Markets set to Roar, Settlements Snooze Till Monday

As India gears up for the Union Budget 2026 on Sunday, February 1, stock markets will buzz with activity despite the weekend. NSE and BSE have scheduled a special trading session, but a key settlement holiday introduces unique rules for investors navigating T+1 cycles and weekend constraints. This arrangement stems from circulars by NSE, BSE, and clearing corporations like NSE Clearing and ICCL, designating February 1 as a non-settlement day.

Trades executed on Friday, which usually get cleared & settled on Monday, will be combined with trades executed on Sunday. As a result, all payments and deliveries will be handled together on Monday. While markets open for regular hours, the absence of T+0 limits same-day flexibility, urging caution on positions carried over the weekend.  

Key Highlights  

• Markets operate normally from 9:15 am to 3:30 pm on February 1 despite it being Sunday, allowing reaction to budget announcements on taxes, sectors, and policies.  
• Trades from January 30 (Friday) and February 1 settle together on February 2 (Monday), as clearing corporations and banks treat Sunday as a holiday for settlements under T+1 cycle.  
• No T+0 settlement on February 1 means same-day payouts or deliveries are blocked; this aligns with BSE and NSE circulars suspending such sessions on holidays.  

Trading Implications:

• Investors holding shares bought before January 30 can sell on February 1, with proceeds available post-settlement on February 2.  
• Intraday trading, including equity and F&O square-offs, remains permissible on February 1, but profits credit only on February 2 due to deferred payouts.  
• BTST strategies hit a wall: Friday purchases stay undelivered in demat until February 2 at noon, risking short delivery if sold prematurely.  

Investor Guidance: 

• Use UPI or instant transfers for funds, as banks close Sunday, delaying traditional channels until Monday.  
• Withdrawals requested on February 1 process on February 2; plan liquidity avoiding reliance on Friday intraday profits, unavailable for Sunday margins.  
• This setup, per NSE/BSE circulars, ensures stability amid budget volatility, pushing all settlements to the next working day.  

Sources: Times of India, Arihant Plus, Flattrade, News18, NSE India, BSE India (via circulars)