The Ultimate Guide to Trading on Budget Day 2026: Timing, New Exchanges, and Survival Strategies

Sunday, February 1st, 2026, is not just another weekend.

For only the second time in India's history, the gates of Dalal Street are swinging wide open on a Sunday. With Finance Minister Nirmala Sitharaman set to present her 9th Budget at 11:00 AM, the stock market is breaking tradition to ensure investors can react to every headline in real-time.

Whether you are a seasoned pro or a curious beginner, here is everything you need to know about this historic trading session.

Market Operations: Why is Sunday a Trading Day?

Why are stock markets open on a Sunday?

Typically, the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are closed on weekends. However, because the Union Budget is the single most important economic event of the year, exchanges conduct a Special Live Trading Session to:

• Prevent Risk Accumulation: Waiting until Monday morning could lead to massive "gap-up" or "gap-down" openings that trap retail traders.

• Real-Time Discovery: It allows the market to digest tax changes, sectoral allocations, and fiscal deficit numbers as they are announced.

  
  

Official Trading Timings (Sunday, Feb 1st)

The markets will follow standard weekday hours to provide a familiar environment for traders:

Session	Start Time	End Time
Pre-Open Market	9:00 AM	9:08 AM
Normal Trading (Equity & F&O)	9:15 AM	3:30 PM
Commodity Market (MCX)	9:00 AM	5:00 PM
Closing Session	3:40 PM	4:00 PM

⚠️ Pro-Tip: While trading is live, this is a Settlement Holiday. This means you cannot sell stocks you bought on Friday (BTST), and any profits made today will only reflect in your withdrawable balance on Monday, Feb 2nd.

The New Challenger: MSEI Relaunches

This Budget Day marks the official "trial by fire" for a revitalized player: the Metropolitan Stock Exchange of India (MSEI).

After a massive ₹1,240 crore funding round from giants like Zerodha and Groww, MSEI successfully upgraded its technology on January 27, 2026. It is now positioned as a high-speed, low-cost alternative to the NSE-BSE duopoly.

What to watch on MSEI tomorrow:

• Liquidity Boost: MSEI is using a Liquidity Enhancement Scheme (LES) for 130 top stocks (like Reliance, HDFC, and TCS) to ensure tight buy-sell spreads.

• Lower Fees: In a bid to win over traders, transaction fees on MSEI are significantly lower during this relaunch phase.

• The Test: This Sunday session will be the first major test of MSEI's new tech engine under extreme "Budget-level" volatility.

  
  

Budget Day Survival: How to Trade Safely

Budget Day is famous for "wick-heavy" candles—prices that shoot up 2% and crash 3% within the same minute. Here is how to keep your capital safe:

• Strict Stop-Losses: Volatility is your friend only if you have an exit plan. Use "System Stop-Losses" rather than mental ones; the market moves too fast for manual exits during the speech.

• Avoid Over-Leveraging: Your broker may reduce intraday leverage (MIS) due to high risk. Stick to smaller position sizes than your usual Friday trades.

• The "Volatility Crush": If you trade Options, be aware of India VIX. High VIX means expensive premiums. Once the speech ends and uncertainty disappears, option prices can crash (IV Crush) even if the market doesn't move much.

• Sector Watch: Keep an eye on Infrastructure, Defence, and Green Energy. These are expected to be the "darling sectors" of Budget 2026.

• Check your segments: Ensure MSEI is enabled on your app (Zerodha/Groww) by today.

• Funds: Add money to your account today; UPI servers often lag on high-volume days like the Budget.

• No BTST: Don't try to sell Friday's delivery today; it won't work due to settlement rules.