Will the Stock Market Open on Saturday, Budget Day? Details Here

Union Budget is one of the events that keenly awaited by all the economical aspects of the Indian economy and stock market. While the Budget is traditionally presented on February 1, the question arises when the date falls on a Saturday: Should stock market open on a non trading day for presentation and passes of the budget issues?

Along with the details about whether the stock market will remain open on a Saturday in case if it is the Budget day.

If the stock market opens today where will it be?
It is therefore worth mentioning that they the stock market trading session usually opens on a Budget day irrespective of whether it is a Saturday or any other non-trading day. The Budget, which has direct bearing on the market sentiments, makes trading necessary in order that the investors may be able to respond to the announcements.

Key Points:

It may be recalled that the NSE and the BSE have opened for trading on the actual day of the event, irrespective of the day of the week.
Trading hours are usually aligned with regular market timings: 9:15 AM to 3:30 PM.
Such a trading session is approved by the market regulators specifically the Securities and Exchange Board of India –SEBI.
Why Is Trading Important on Budget Day?
The Union Budget has a direct bearing on some sectors, specific industries and even the economy in large.

1. Impact on Market Sentiment:

Stock prices follow announcements regarding tax reforms, government expenditure policies and the likes.
Businessmen and investors keenly observe the budget formation process in order to make they port ion of securities adjusted.
2. Sectoral Influence:

Infrastructure, banking, automobile and healthcare are some of the areas that may have large swings in accordance with what is provided in Budget and the ensuing reforms.
3. Immediate Reaction:

As for the stock market operations it is stated that this practice is beneficial as it activates on the budget day so that the participants are able to respond to changes immediately and equally effectively.
Historical Precedent: Stock Market on Budget Day
In previous occasions, Budget was presented on any particular week end, Stock exchanges were being open to trading normally.

Examples:

Union Budget 2021: The Budget was presented on a Monday February 1, but special trading sessions have been organized on Mondays in the past.
Special Trading Sessions: Sometimes, exchanges hold a set of “special” sessions to cater for the events like the Budget or policies.
Trading Tips for Budget Day
Investors should exercise caution and consider the following strategies while trading on Budget day:

1. Watch for Volatility:

While making the announcement the markets undergo a lot of fluctuation where the stocks and the indices especially show very large fluctuations.
2. Focus on Sectoral Impact:

Determine industries likely to be favourable or unfavourable based on the government policies that governing the respective industrial sector. For example:
The claims that might be evidenced through enhanced infrastructure expenditure are as follows:
There was a tax reform which affected FMCG or IT companies.
3. Avoid Emotional Decisions:

To cater to the Budget, always keep an eye for the potential Budget related announcements but do not make quick trades based on them.
4. Long-Term Perspective:

The band approach should be used to avoid chasing market trends trying to identify when to buy and when to sell.