Budget Day 2026 Trading Rules: What to Know Before You Trade on Sunday

The Union Budget 2026 will be presented on Sunday, 1 February, and for one day, the stock market won’t follow its usual weekend break. Indian exchanges will remain open for trading, giving investors a chance to react to budget announcements as they happen.

That said, while trading will be live, settlement will not take place on Sunday. This makes it important to understand how funds, holdings, and withdrawals will work before you place any trades.

Here’s a clear breakdown of what changes on Budget Day and what doesn’t.

Will the stock market be open on Budget Day 2026?

Yes. On Sunday, 1 February 2026, Indian stock exchanges will hold a special trading session to coincide with the Union Budget presentation.

You will be able to trade across:

• Equity
• Equity derivatives (F&O)
• Currency derivatives
• Commodity derivatives

From a trading perspective, the day will feel like a normal market session. From a settlement perspective, it won’t.

Budget Day 2026 market timings

The market will follow its usual intraday schedule:

• Pre-open session: 9:00 AM
• Regular trading session: 9:15 AM to 3:30 PM

Orders, executions, and price movements will work exactly as they do on a normal weekday.

The important part: settlement on Budget Day

Even though you can trade on Sunday, settlement will happen on the next working day, which is Monday, 2 February 2026.

What this means in practice:

• Trades placed on Sunday will be settled on Monday
• Funds and shares will be credited only after settlement
• Withdrawal requests placed on Sunday will be processed after Monday’s settlement

So while you can buy and sell on Sunday, you won’t see money move in or out of your bank account until Monday.

Which funds can you actually use on Sunday?

Not all balances in your trading account will be available for use on Budget Day. Only settled funds can be used.

Funds that can be used for trading

• Proceeds from shares sold on Friday, as long as those shares were bought on or before Wednesday, 28 January
• Funds from earlier settled delivery trades

These funds can be used to place new trades on Sunday, but they cannot be withdrawn on the same day.

Funds that will not be available

• Intraday equity profits from Friday
• Intraday F&O profits from Friday
• Options premiums received on Friday
• Profits from BTST or other unsettled trades

All of these will be credited only after settlement on Monday.

Can you sell shares bought on Friday?

No. Shares purchased on Friday, 30 January, will not be settled by Sunday, which means they cannot be sold on Budget Day.

You’ll be able to sell them once settlement starts on Monday.

Quick recap

                                                                               

What this means for traders and investors

Budget Day is usually volatile. Announcements around taxes, government spending and sector incentives often lead to sharp price moves.

Trading on Sunday gives you the advantage of reacting immediately, but it also means:

• You should not depend on unsettled profits for new trades
• Liquidity planning becomes important since withdrawals happen later
• Position sizing should be conservative, especially for short-term trades

For long-term investors, the session can be useful for adjusting portfolios based on policy direction. For active traders, it’s a day that rewards preparation more than speed.

Final takeaway

Budget Day 2026 is a rare trading session that breaks the usual weekend routine. You can trade, react, and reposition, but settlement follows normal rules.

Before placing orders, check which funds are settled, plan your liquidity for Monday, and trade with a clear understanding of how the day works.