Stock Market Sunday Trading: All eyes are on the stock market’s special Sunday trading session as Finance Minister Nirmala Sitharaman presents Union Budget
2026 later today. With foreign investors continuing to exit Indian equities at an aggressive pace, markets are hoping the Budget offers cues to stabilise sentiment. Foreign institutional investors (FIIs) have pulled out a massive $23 billion from Indian equities - $19 billion in 2025 and another $4 billion in January 2026 alone. The sustained selling has been driven by a weaker rupee, stretched valuations and lower post-tax returns, making Indian stocks less attractive compared to near risk-free returns in developed markets. Income Tax 2026 Live Updates According to reports, the government is considering possible tax relief for foreign portfolio investors (FPIs). Investment bank Jefferies said such a move could be positive for equities and act as a tailwind for cash markets, though it cautioned that this is not its base-case expectation. Market participants expect heightened volatility during Sunday’s special trading session as Budget announcements unfold. Analysts are advising investors to remain cautious and adopt hedged strategies amid sharp intraday swings. Several stocks will be in focus during the session, including Bajaj Auto, Adani Green, IDBI Bank and Delhivery, driven by third-quarter earnings and key corporate developments. Union Budget 2026 Live Updates Indian markets enter Budget Day on a fragile footing. The Nifty has fallen over 2% in January and is down around 1.5% in the fortnight leading up to the Budget. The rupee has weakened sharply, and foreign selling pressure has continued unabated. Against this backdrop, expectations from Budget 2026 remain measured, with analysts not anticipating any major big-bang reforms. Meanwhile, ITC has emerged as a key Budget talking point. The stock has fallen nearly 20% in about a month, wiping out close to Rs 1 lakh crore in market capitalisation, following a sharp hike in cigarette taxes announced in late December. Investors are now watching the Budget closely for signals on the future taxation framework.
