As the nation eagerly awaits the Union Budget 2026 presentation today, February 1st, by Finance Minister Nirmala Sitharaman, the Indian stock markets are set for an exceptional Sunday trading session. Investors are keenly eyeing key sectors and companies, with a sharp focus on the “stocks to watch today” for potential impacts from policy announcements. This Budget 2026 is expected to outline significant reforms and capital expenditure plans, making it crucial for traders and long-term investors alike to monitor specific stocks to watch across defence, infrastructure, and the evolving green economy. Prepare for a day of high volatility and critical market movements.
Stocks to Watch Today on Budget Day 1st February 2026
The market focus today is centered on high-conviction “Budget plays” across sectors like defense, infrastructure, and green energy. Key stocks showing significant pre-budget momentum include Bharat Electronics (BEL), HAL, and L&T. Analysts expect these counters to react sharply to any changes in capital outlay or PLI scheme (Production Linked Incentive) extensions. Traders should also monitor Hindustan Zinc and Vedanta, as the metals space often sees high volume during policy shifts related to mining and export duties.
Stock Market Open Today or Not? (Sunday, Feb 1)
Yes, the Indian stock market is OPEN today, Sunday, February 1, 2026. While the BSE and NSE are typically closed on weekends, the exchanges have issued special circulars to conduct a full trading session to coincide with the Union Budget presentation. This rare Sunday session is designed to prevent a massive “gap opening” on Monday and to maintain market stability during a high-impact news event. Benchmark indices like Nifty 50 and Sensex are expected to witness high volatility as the Finance Minister begins her speech.
What Time Market Will Open and Close Today?
The equity markets (BSE and NSE) will follow the standard weekday trading schedule today despite it being a weekend.
- The pre-open session starts at 9:00 AM and ends at 9:08 AM.
- Normal trading begins at 9:15 AM and concludes at 3:30 PM.
- The closing session runs from 3:40 PM to 4:00 PM.
- For the commodity market (MCX), trading is open from 9:00 AM to 5:00 PM.
Key Budget and Fiscal Indicators
To understand the speech today, investors should listen for these critical terms that dictate market sentiment:
- Fiscal Deficit: The gap between government expenditure and revenue (Target for FY27 is expected near 4.3%).
- Capex (Capital Expenditure): Investment in long-term assets like roads and bridges (Expected to rise 10-15%).
- Direct Tax & LTCG: Any changes to Long-Term Capital Gains (LTCG) tax or personal income tax slabs.
- Disinvestment: The government’s plan to sell stakes in PSUs like IDBI Bank or LIC.
- Fiscal Consolidation: The roadmap to reducing national debt.
Defence and Infrastructure: HAL, BEL, and L&T
The defence sector is expected to see a sharp rise in defence capex. Stocks like Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) are prime beneficiaries of the “Atmanirbhar Bharat” push. Meanwhile, Larsen & Toubro (L&T) and RVNL will be sensitive to announcements regarding the “National Infrastructure Pipeline” and high-speed railway corridors.
Automobile and EV Shift: Bajaj Auto and Tata Motors
With the focus on the Green Economy, the auto sector expects news on the next phase of FAME subsidies. Bajaj Auto and Tata Motors are key stocks to watch as the government incentivizes electric vehicle adoption and battery manufacturing. Any reduction in import duties for EV components could spark a rally in this segment.
Frequently Asked Questions (FAQ)
Is today a settlement holiday?
Yes, Feb 1 is a settlement holiday. Shares bought on Friday cannot be sold today, and shares bought today can only be sold on Tuesday, Feb 3.
Can I trade F&O (Futures and Options) today?
Yes, the F&O segment on both BSE and NSE is fully functional during the special Sunday session.
What time does the Finance Minister start the Budget speech?
The Budget 2026 speech is scheduled to begin at 11:00 AM IST in Parliament.
Will the banks be open today?
No, while the stock market is open, banks remain closed for regular public transactions as it is a Sunday.
