Stock Market Budget 2026: Markets trades in green on special Sunday session; Gold, Silver prices plunge

NEW DELHI: Stock markets indices were trading trading in green in the Sunday’s special trading session ahead of the Union Budget 2026.The Nifty 50 was at 25,357.15, up by over 36 points, while Sensex was up by over 226.67 points at 82,496.45 , as at 11.05 am.The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) had issued separate circulars confirming that trading will proceed as usual on Budget day. Both exchanges said market hours will remain unchanged, following the standard schedule for a regular trading session.

Gold, Silver crash

Gold and silver prices tumbled on Sunday, hitting lower circuit levels in futures trade ahead of the Union Budget 2026–27 presentation.

Gold futures for April 2, 2026, delivery dropped Rs 9,140, or 6%, to Rs 1,43,205 per 10 grams, while silver futures for March 5, 2026, delivery fell Rs 17,515, or 6%, to Rs 2,74,410 per kg.The steep fall extended to MCX shares, which slipped 10% to hit the lower circuit at Rs 2,145.25. Analysts attributed the selloff to profit-booking following Friday’s historic crash, which saw both metals post their sharpest single-day declines. Market participants are closely watching how the Union Budget and global cues influence the recovery of precious metals in the coming sessions.Also read: Gold, silver prices crash on Budget 2026 day; hit lower circuit levels in futures trade – what’s causing the slide?The BSE added that while key segments such as equity, futures and options, and commodity derivatives will operate normally, certain specialised sessions will be suspended. “Trading Members may note that trading in the T+0 Settlement Session and Auction Session for settlement default will not be conducted on Sunday, February 01, 2026,” the exchange said.Trading on a Sunday is uncommon for Dalal Street, as both exchanges typically remain shut on weekends and designated public holidays. February 1 will therefore be among the rare Sundays when markets are open for regular trading.Talking about investor expectations, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “Investors don’t have expectations of any major tax reliefs in this Budget since the 2025 Budget delivered huge income tax reliefs. Some tweaking of certain taxes is likely. If there is an increase in exemption for long-term capital gains tax from Rs 1.25 lakhs presently to a higher limit that would be a positive. From the market perspective, a fiscally prudent, growth-oriented Budget is desirable. There are rumours of exemption from long-term capital gains tax for certain categories of FIIs. If this happens, it can trigger a rally in the market.”Further mentioning sectors that’ll be in focus, he added, “Higher allocation for defense is a given and, therefore, defense stocks will continue to be in focus. A thrust area of the Budget can be exports, particularly manufacturing exports which the Economic Survey harps on. Therefore, export segments are likely to be on the radar of investors. Announcements relating to PSU bank mergers; disinvestment in PSUs will be keenly watched. Aside from the Budget, the crash in precious metal prices may bring investors back into equity.”A look at market trends over the past decade shows that Budgets have sparked strong rallies, but many have led to muted moves or even declines.Markets generally respond well when the Budget emphasises growth, infrastructure spending and tax stability. In 2017, for instance, then finance minister Arun Jaitley avoided major tax hikes and offered relief to the middle class. Investors welcomed the approach, with the Sensex rising about 1.7 per cent and the Nifty gaining nearly 1.8 per cent , one of the stronger Budget Day performances of that period.Another standout came in 2021, when Nirmala Sitharaman presented the Budget in the wake of the Covid-19 shock. With a clear push towards economic recovery, higher capital expenditure, healthcare and infrastructure, markets rallied sharply. The Sensex jumped over 2 per cent and the Nifty climbed almost 2.7 per cent, marking one of the best Budget Day gains in recent years.But not every Budget has cheered investors. In 2016, higher dividend taxation dampened sentiment, and the Sensex ended the day in the red. In 2018, the introduction of long-term capital gains tax on listed equities and equity mutual funds caught markets off guard. Although indices slipped only modestly on the day, they fell around 6.8 per cent over the following sessions. The 2023 Budget triggered a largely flat reaction, as it maintained fiscal discipline but lacked big-bang reforms to excite traders.The July 2024 Budget also drew a cautious response. Changes related to capital gains taxation surprised some investors. While the reaction was not severe, both the Sensex and Nifty ended slightly lower, underscoring how unexpected tax measures can weigh on sentiment even when the broader macro picture is stable.Also historically, volatility after the Budget has been common, and one-month returns have often been mixed.As the nation heads into the Union Budget 2026, market conditions are already unsettled. Equity indices have pulled back from recent highs, foreign portfolio investors have been net sellers, and global factors such as interest rates, geopolitical tensions and trade policies continue to influence sentiment. In this backdrop, sharp moves on Budget Day are almost inevitable.