As we write traders are mostly reconciling themselves to the fact that we may not have trading on Feb 28, the day of the Union Budget 2015-16, which is being presented by Finance Minister Arun Jaitley.
It's sad news for traders who tend to take huge positions ahead of the Union Budget as this time Feb 28 falls on a Saturday. In fact, it's a day when traders witness an adrenaline rush and one is not sure why there is no trading.
Even when the Union Budget was presented after 5 pm as was the case prior to 2001, stock markets traded in the evening which was not the normal market hours. It's difficult to understand why markets are not trading and both the NSE and the BSE are waiting for directions from the regulator.
The real problem is going to be for investors. Since the markets would get 2 days to react to the proposals in the Union Budget, they could open sharply higher or lower on Monday, March 2. This could could lead to losses for traders and it is possible that the losses could be colossal.
If trading were to be permitted or Saturday (until now it is not)the damages would have been far lesser.
As far as the exchanges are concerned the average volumes are always higher on events like the Union Budget and it would have benefited the exchanges as well.
Recently, SEBI Chairman U K Sinha said that "the timing of the Budget is the prerogative of the government; the market functions according to its own calendar."
We still have a good 12 days to go before the Union Budget and it is hoped that the proposals would be accepted to have trading on the Union Budget day.