New Delhi: Indian equity markets were expected to open on a positive note on Sunday as investors turned their full attention to the presentation of the Union Budget 2026–27, a key policy event that could set the tone for markets in the coming months. With Finance Minister Nirmala Sitharaman scheduled to unveil the Budget later in the day, market sentiment remained cautiously optimistic, driven by hopes of continued government support for economic growth, infrastructure spending, and investment-led expansion.
Early market indicators suggested that benchmark indices such as the BSE Sensex and NSE Nifty 50 could edge higher at the opening, reflecting expectations that the government would maintain its focus on capital expenditure, fiscal discipline, and structural reforms. Analysts said investors were positioning themselves ahead of policy clarity, particularly on sectors that are closely linked to government spending and long-term growth.
The Union Budget is widely seen as one of the most important macroeconomic events for Indian financial markets, and this year’s presentation comes at a time when investors are looking for reassurance on growth momentum amid global uncertainties. Market participants are closely watching for announcements related to infrastructure development, manufacturing incentives, export support, and measures to stimulate domestic consumption, all of which have the potential to influence stock prices across sectors.
Traders noted that expectations of sustained public investment, especially in roads, railways, power, and urban infrastructure, have lent support to market sentiment. Any clear roadmap on fiscal consolidation combined with growth-oriented spending could further boost confidence among both domestic and foreign investors.
The markets were operating during a rare special Sunday session, underlining the significance of the Budget announcement. Such sessions are uncommon in Indian market history and typically generate heightened interest and volatility. Despite the positive cues, investors largely adopted a wait-and-watch approach, preferring to hold positions until concrete policy details emerged from the Finance Minister’s speech.
Market experts pointed out that while pre-Budget optimism often supports indices, the actual reaction tends to depend on how well the Budget meets expectations on taxation, spending priorities, and reform measures.
Analysts believe that sectors such as infrastructure, capital goods, banking, and manufacturing could see increased activity if the Budget reinforces the government’s commitment to high capital expenditure. At the same time, any measures aimed at boosting rural demand, MSMEs, and employment generation may provide a lift to consumer-facing stocks.
However, caution persists due to broader global factors, including currency movements, foreign portfolio investor behaviour, and international economic conditions, which continue to influence Indian markets. Recent sessions have seen mixed trends, with gains capped by concerns over global growth and external headwinds.
As the finance minister prepares to present her ninth consecutive Budget, investors and analysts alike are keenly watching for signals that balance fiscal prudence with growth support. Clear guidance on spending priorities, reform direction, and investor-friendly measures is expected to play a decisive role in shaping near-term market trends.
For now, Indian equities appear set for a measured but positive opening, with the real test likely to come once the finer details of Union Budget 2026 are digested by the markets.