Can you sell shares that you bought today on February 1? Check cash market settlement rules for Budget day

Can you sell shares that you bought today on February 1? Check cash market settlement rules for Budget day

• Shares bought on Jan 30 can't be squared off on Feb 1 due to settlement holiday
• Shares bought on Feb 1 can't be sold on Feb 2 as settlement won't occur that day
• Budget 2026 may boost defence, renewables, electronics, and consumer durables stocks.

Did our AI summary help?

Before you buy shares on January 30 or February 1 to make the most of the Budget-related market volatility, do keep yourself abreast of the cash settlement rules for the Budget day.

With Sunday being a settlement holiday, shares that you bought on January 30 cannot be squared off on February 1 even though markets will stay open due to Union Budget 2026 announcement.

Also, shares that you intend to buy on February 1 cannot be sold on February 2.

A settlement holiday is a day when the stock market is open for trading, but the post-trade settlement systems are closed.

You can buy and sell shares as usual on the exchange (NSE/BSE) but the actual transfer of money and shares (settlement) does not happen that day because banks, clearing corporations, or depositories (NSDL/CDSL) are shut.

"On account of the presentation of the Union Budget, members are requested to note that Exchange shall be conducting live trading session on February 01, 2026, as per the standard market timings (9:15 am-3:30 pm)," said NSE in a circular earlier this month.

Budget expectations

Global brokerage Jefferies expects government capex growth of around 10%, strong emphasis on defence in Budget 2026.

Defence capex growth of 20% to benefit defence PSUs and allied companies, higher PLI allocations to support EMS players like Dixon Tech, said Jefferies.

Renewables, electronics manufacturing, consumer durables will be in focus depending on budget announcements, it said.

Solar irrigation pump allocations could aid renewable stocks and pay-commission provisioning may help consumer durables, added Jefferies.

Life insurance stocks could gain from any rise in tax-relief investment limits for traditional policies, the brokerage.

Banks could benefit from deposit growth measures; affordable housing lenders from possible interest subsidy expansion, Jefferies further said.