The National Stock Exchange of India (NSE) has officially confirmed regular trading operations on February 1, 2026, coinciding with Finance Minister Nirmala Sitharaman's presentation of the Union Budget for FY26-27. Both NSE and BSE issued circulars on January 16, 2026, notifying trading members of this exceptional Sunday session to enable immediate market response to fiscal policy announcements.

Standard Trading Hours Maintained

NSE will operate with normal market timings despite the weekend schedule, ensuring seamless market operations during this significant economic event. The exchange has specified that a random closure may occur in the final minute of the pre-open session.

Comprehensive Market Segments Active

NSE will operate its capital market, futures and options, and commodity derivatives segments during the Sunday session. BSE has similarly scheduled live trading across equity, equity derivatives, and commodity derivatives segments.

Pre-Budget Economic Survey Release

Ahead of the Budget presentation, the Ministry of Finance will release the Economic Survey, followed by a press briefing led by Chief Economic Advisor V. Anantha Nageswaran and other senior officials. The Economic Survey serves as an annual review prepared by the Department of Economic Affairs, assessing the economy's state over the past year and providing analytical groundwork for the Budget.

Settlement and Special Trading Features

Both exchanges have clarified that T+0 settlement sessions will not be conducted on February 1 due to settlement holiday restrictions. BSE will conduct morning and afternoon block deal windows at 8:45 AM and 2:05 PM respectively, along with periodic call auction sessions throughout the day.

The Sunday trading session represents a strategic departure from the usual Monday-to-Friday schedule, reflecting the Union Budget's significance in shaping market dynamics and ensuring traders can respond immediately to the government's fiscal roadmap for economic growth and welfare priorities.

Indian equity markets staged a recovery on Thursday, with benchmark indices snapping their two-day losing streak as technology stocks led the rally following Infosys' better-than-expected third-quarter results and upgraded revenue growth outlook, injecting fresh optimism into a range-bound market.

Market Performance Overview

The key market indices showed positive momentum, though they settled off their daily highs due to profit-booking at higher levels:

Both indices gave up significant intraday gains in the latter half of the session as investors adopted a cautious stance ahead of key earnings announcements from HDFC Bank and ICICI Bank scheduled for January 17.

Technology Sector Leads Rally

The Nifty IT index emerged as the top sectoral performer, surging 3.34% after Infosys reported better-than-expected results and upgraded its revenue growth outlook. The sector's outperformance reflected investor confidence in sustained demand for technology services.

"Indian equity markets ended marginally higher, supported by positive sentiment in IT & banking," said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services.

Banking Sector Momentum Continues

Banking stocks provided additional support, with the Nifty Bank index extending its rally for the fifth consecutive session. The Nifty PSU Bank index gained 1.20%, while heavyweight private sector banks witnessed strong accumulation ahead of their quarterly results.

"Bank Nifty outperformed the broader market, led by strong gains in PSU banks," noted analysts at Bajaj Broking. The banking sector's sustained momentum ahead of major earnings announcements indicates investor optimism about quarterly performance.

Market Breadth and Individual Movers

Market breadth remained mixed, with 1,849 stocks advancing against 2,395 declining on the BSE, while 150 remained unchanged. Notably, 260 stocks hit 52-week lows compared to just 84 touching 52-week highs, indicating continued pressure in the broader market.

Major Decliners:

The Nifty Pharma index declined 1.30%, while the Nifty Metal index slipped 0.50% due to profit-booking after recent gains. The Nifty Smallcap 100 index underperformed, declining 0.28% to 17,362.30.

Technical Outlook and Currency Concerns

"Going ahead, for Nifty, the 100-day EMA zone of 25,600-25,550 will act as immediate support," said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities. "On the upside, the 50-day EMA zone of 25,850-25,900, which also coincides with the rising trendline zone, will act as immediate resistance."

The Indian rupee remained under pressure, with analysts noting its underperformance relative to Asian peers stems from high dollar demand and retreating foreign capital. Markets are expected to remain volatile in the near term, with earnings from major banking heavyweights and global developments likely to influence sentiment in coming sessions.