Stock markets to open on Sunday:How the session will work, and history behind India’s rare weekend trading days

With Indian markets set to trade on a Sunday for the Union Budget 2026, many investors are left with questions. This explainer covers everything from trading hours and active segments to the history of weekend market sessions. Readers will also gain clarity on the Security and Exchange Board of India’s (Sebi) regulatory position and learn why weekend closures exist in the first place—helping them better prepare for special, high-impact trading days. In an email interaction with Bhaskar English, S. Ravi Rajan, former BSE chairman and founder of Ravi Rajan and company, explains this intriguing market event and unpacks why it matters. Here is the edited excerpt: Q1: Since markets will be open this Sunday for the Union Budget 2026, will it be a regular session or a symbolic one? Ans: Since February 1, 2026, falls on a Sunday, the BSE and NSE have confirmed a regular trading session rather than a symbolic one to ensure real-time price discovery during the Union Budget presentation. Trading hours: The markets will follow standard weekday timings, with the pre-open session from 9:00 AM to 9:08 AM and normal trading from 9:15 AM to 3:30 PM. Segments: Live trading will be active across all core segments, including Equities, Equity Derivatives (FO), and Currency Derivatives. Operational details: While trading is regular, certain specialised sessions like the T+0 settlement and the auction session for settlement defaults will remain suspended for the day. Q2: How many times have Indian stock markets been open on a Saturday or Sunday? Ans: Historically, markets generally remain closed on Saturdays and Sundays. However, there have been 5 to 7 notable instances since the shift to electronic trading where the BSE and NSE remained open on a weekend. These exceptions typically occur for the Union Budget (such as in 2015 and 2020), Disaster Recovery (DR) drills to test technical infrastructure (such as in May 2024), or special contingency sessions due to midweek holidays or technical glitches. While Muhurat Trading may also occur on a weekend if Diwali falls on a Saturday or Sunday, these are symbolic one-hour sessions rather than full trading days. Q3: What functions do stock markets perform during a symbolic session? Ans: In a symbolic trading session, such as Muhurat Trading, the market primarily functions to facilitate token investments and honour cultural traditions like the Chopda Pujan, marking the auspicious start of a new financial year. Beyond its ceremonial value, the session serves practical operational purposes, including testing the exchange’s technical infrastructure, ensuring seamless connectivity for brokers, and allowing for minor price discovery following holiday breaks. Although trading volumes are typically lower than a standard day, all transactions are real, binding, and subject to full regulatory oversight and settlement processes, ensuring that the exchange’s risk management systems remain robust and prepared for regular market hours. Q4: Do Sebi rules stop stock markets from operating on weekends? Ans: Under Sebi regulations and the Securities Contracts (Regulation) Act, there is no explicit legal prohibition against stock markets operating on weekends; instead, trading days are governed by exchange bye-laws, subject to regulatory oversight. While Indian exchanges traditionally follow a five-day workweek to maintain global synchronisation, they frequently conduct special sessions on Saturdays or Sundays for events such as Union Budget announcements, Muhurat Trading, or technical disaster recovery drills. Sebi maintains the authority to mandate or approve changes to these hours, and while the current standard remains Monday through Friday, the regulatory framework is flexible enough to allow for extended hours or weekend operations if deemed necessary for market development or global competitiveness. Q5: What is the historical reason behind stock markets staying closed on weekends? Ans: Weekend closures serve as a critical structural mechanism for maintaining financial stability, technical integrity, and informed decision-making. Historically, this pause provided the necessary time for the physical clearing and settlement of shares between banks and brokerages, a process that once required manual reconciliation. Beyond logistics, the weekend acts as a “cooling-off” period that prevents irrational volatility by allowing investors to digest complex geopolitical news and corporate earnings reports without the pressure of a live ticker. From a risk management perspective, concentrating trade into five days ensures higher liquidity and prevents “flash crashes” that might occur during low-volume overnight hours. Additionally, this downtime allows for vital information system audits and regulatory oversight, ensuring that the exchange’s infrastructure remains robust while giving market participants a standardized window to synchronize global financial data.