The Indian stock market is preparing for an unprecedented and historic trading session today, Sunday, February 1, as it aligns with the live presentation of the Union Budget 2026 by Finance Minister Nirmala Sitharaman at 11 am. This rare Sunday opening marks a significant moment in India's financial calendar, with investors and traders closely monitoring every development.
Market Volatility Expected Amid Budget Announcements
According to Ponmudi R, CEO of Enrich Money, markets are likely to experience heightened volatility throughout the session. Sharp movements in either direction are anticipated depending on key announcements regarding fiscal policy, capital expenditure push, sector-specific incentives, and the crucial fiscal deficit target, which analysts expect to be around 4.3–4.4% of GDP for FY27.
"Pre-Budget caution continues amid persistent FII outflows, a weak rupee hovering near 92/USD, and mixed global cues," Ponmudi noted. "However, steady DII buying and the market's ability to hold key support levels are offering some downside cushion. A favourable Budget reaction could trigger an upside breakout, while any disappointment or profit-booking may pull indices back towards lower support zones. Until there is clarity from the Budget, the overall bias remains cautious to neutral."
Stocks to Watch on Budget Day 2026
Against this backdrop of uncertainty and potential opportunity, several stocks are expected to attract significant investor interest and could experience notable movements during today's historic session.
Banking and Financial Sector
IDFC First Bank: The lender's stock is anticipated to respond not only to budget announcements but also to its earnings announcement scheduled for Saturday, January 31. In the third quarter, IDFC First Bank reported a 12% year-on-year rise in core income, while maintaining steady asset quality.
Automobile Industry
Bajaj Auto: The company posted impressive third-quarter results with a net profit of ₹2,502 crore, marking an 18.6% year-on-year increase. Revenue grew 18.8% to ₹15,220 crore, while EBITDA rose 22.5% to ₹3,161 crore, positioning it as a strong performer in the automotive sector.
Steel and Manufacturing
Steel Authority of India: The company reported a net profit of ₹374 crore in Q3, with revenue reaching ₹27,371 crore and EBITDA at ₹2,294 crore. The EBITDA margin for the quarter stood at 8.4%, highlighting its operational efficiency despite challenging market conditions.
E-commerce and Technology
Meesho: The e-commerce platform's consolidated net losses for the quarter ended December surged dramatically to ₹491 crore, representing a thirteen-fold increase from ₹37 crore in the same period last year, raising concerns about its path to profitability.
Renewable Energy
Adani Green: Adani Green Energy released an additional statement concerning the civil case filed by the US Securities and Exchange Commission against its directors, Gautam Adani and Sagar Adani, in a US federal court. The company emphasized that it is not involved in the case and no charges have been filed against it, potentially impacting investor sentiment.
Power and Energy Sector
NTPC: The power giant posted a net profit of ₹4,987 crore in the December quarter, marking a 5.8% increase compared to the same period last year. While revenue fell 1.8% to ₹40,643 crore, EBITDA remained almost unchanged at ₹11,991 crore, with the EBITDA margin improving to 29.5% from 28.9%.
Hindustan Petroleum Corporation: HPCL has signed a share subscription and shareholders agreement with Maraal Aerospace, a deep-tech startup incubated by IIT Kanpur, at IEW 2026 in Goa. This strategic move aims to bolster India's clean-energy and advanced aerospace technology ecosystem.
Pharmaceutical Industry
AstraZeneca Pharma: The company has obtained approval from the Central Drugs Standard Control Organisation to import, market, and distribute Durvalumab Solution for Infusion in 120 mg/2.4 mL and 500 mg/10 mL strengths, known commercially as Imfinzi.
Sun Pharma: The pharmaceutical company is scheduled to announce its Q3 earnings on Saturday, January 31. Sun Pharma's US formulation sales reached $477 million, reflecting a slight year-on-year increase of 0.6%, indicating stable performance in international markets.
Defense and Aerospace
Bharat Dynamics: The defense company reported concerning financial results with net profit dropping by 50%, while revenue and EBITDA fell 32% and 79.5% year-on-year, respectively. Its profit margins also plunged sharply, declining to 4.6% from 15.3% in the same period last year.
As India's financial markets navigate this historic Sunday trading session, all eyes remain fixed on the Union Budget 2026 announcements that could reshape market trajectories across multiple sectors. The combination of budget expectations and individual company performances creates a complex landscape for investors seeking opportunities amid the volatility.
