Stock Market Holidays 2025: One of the biggest events of the financial year 2025-26 is arriving on February 1st, when the Government of India will declare receipts, expenditures and many reforms to drive the economy's growth. This is called Union Budget! Right from the common man to taxpayers and India Inc., all have high hopes for Budget. Since 2017, the Finance Minister of India has been declaring the Union Budget of the country on February 1st every year. Will the stock market be open on the coming Budget day?
Stock Market Holidays:
The February 1st Budget announcement falls on a weekend, namely Saturday. And weekends are by default stock market holidays. Hence, trading in equities, equity derivates, derivatives, commodities, bonds, forex and other market related instruments will be closed on Saturday, February 1, 2025.
Notably, this is the second time February 1st has fallen on Saturday since 2017, and the Covid-19 pandemic. The last Budget that was presented on a Saturday was on February 1, 2020, right after nationwide band due to the coronavirus.
What Is a Union Budget?
India's Union Budget is known as the annual financial statement under Article 112 of the Constitution of India. This annual budget is announced every financial year since Republic Day in 1950 which marked the constitution of the country.
The annual Budget includes revenues and capital expenditure targets that the government could spend or predict to earn during that financial year. During the annual budget, the Finance Minister announces key reforms and policies that could drive consumption, investment and income of citizens and companies. That being said, the annual budget aims to drive the economy in that respective fiscal than compared to the previous year.
What Market is expecting from Budget 2025?
Chandraprakash Padiyar, Senior Fund Manager at Tata Asset Management said, that late 2024 and ongoing in 2025 is a clear trend of global capital moving towards the US economy. US$ has appreciated against all currencies sharply. With the new President in the US promising further protectionism, every economy in the world needs to focus on its strong points and look more internally. Fiscal discipline along with other macro parameters would be critical in these times.
Padiyar added, "India has done very well over the past few years on improving fiscal health and the government has articulated its target to achieve below 4.5% deficit for FY26E. Additionally, the Finance Minister articulated the target to reduce debt to GDP sharply beyond FY27. It would be prudent to continue to walk the path of fiscal consolidation and reduce debt to GDP ratios for the country which will go a long way in sustaining growth in the long term."
While Sarvjeet Singh Virk, Co-founder & MD, Shoonya by Finvasia said, "I am keen to see how Budget 2025 drives economic growth and inclusivity through key reforms. Reducing long-term capital gains tax, extending retail tax exemptions, increasing FDI limits, and promoting green bonds and startups through tax breaks would help attract capital and foster innovation. Standardizing KYC processes for Ease of Doing Business (EODB) and incentivising first-time investors in the capital market can also significantly enhance financial inclusion and encourage broader participation in India's economic growth. GIFT City's IFSC and enhancements to the Retail Direct Scheme would strengthen India's position as a global financial hub - an opportunity I believe we shouldn't miss out on."
Virk further said, "Past budgets have focused on privatization, modernization, and reforms across PSUs, railways, defense, agriculture, and GST to drive growth and improve efficiency. Continued advancements in these sectors to simplify compliance, reduce tax evasion, and enhance Public Digital Infrastructure is the need of the hour to boost growth and improve tax efficiency. With an FY26 fiscal deficit target of -4.5% of GDP, emphasis on capex, job creation, MSME support, and rural housing aligns with a long-term vision to achieve developed nation status by 2047, positioning India for sustained global leadership."
How Stock Market Is Expected To Perform In The Week Ahead?
Puneet Singhania, Director at Master Trust Group said, the coming week promises to be eventful for the Indian equity market, with key macroeconomic data and important corporate earnings reports set to shape market sentiment.
The Master Trust Group highlighted the following key events that could stir market sentiments in India:
- On Monday, January 27, China's NBS Composite PMI for January will provide insights into the performance of China's manufacturing and non-manufacturing sector health. On Tuesday, January 28, the U.S. Durable Goods Orders for December will offer clues about discretionary spending at the consumer level, followed by Japan's Consumer Confidence for January on Wednesday, January 29.
- On Thursday, January 30, the U.S. Federal Reserve's Interest Rate Decision will be announced, which is expected to remain at 4.5%, along with the U.S. GDP Growth Rate for Q4, which is forecasted at 3.1%. These releases will provide essential information on economic growth and monetary policy.
- On Friday, January 31, key U.S. data will be released, including the Core PCE Price Index MoM for December measuring the price change in goods and services purchased by consumers and UK Nationwide indicating trends in UK house prices.
Singhania said, "The interplay of rising inflation, global price trends, and corporate performance will be crucial for market participants. Robust performances from these corporate heavyweights could catalyze positive investor sentiment, while any earnings misses may exacerbate market volatility. "
The technical market outlook:
Nifty 50 Outlook:
Singhania said the NIFTY index ended the week with a 0.48% decline, marking its third consecutive weekly loss. It trades below critical support levels, including the horizontal zone and ascending trendline, as well as the 21 EMA, 55-week EMA, and 200-day EMA, confirming a downtrend. The resistance zone at 23350-23450 continues to cap any upward momentum, signalling strong selling pressure.
The current technical structure supports a "sell on rise" strategy until the index sustains above 23450. The market may target 22850 and 22600 on the downside. However, a breach above 24450 could signal a potential recovery toward 23750. Traders should remain cautious, as technical setups indicate a bearish bias persists, he added.
Indian stock market will react to the budget 2025 announcement on February 3rd, 2025. FM Nirmala Sitharaman will present her eighth Budget for India.
Last week was volatile and the market closed in deep red. From January 20-24, the weekly performance of Sensex is lower by 592.15 points or 0.8%, while Nifty's weekly performance is down by 116.55 points or 0.50%. Sensex underperformed Nifty.
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