2 minutes of readingPuneJanuary 31, 2026 21:54 IST
As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026 on Sunday, February 1, the Indian stock market is gearing up for a high-stakes session. This is only the second time in history that markets will remain open on a Sunday to process the fiscal roadmap, market experts said.
2026 Union Budget comes to a critical moment. While India remains an outlier in global growth, the domestic market is currently experiencing a period of “selective optimism.” Analysts suggest that this Budget will mark a structural shift, moving away from broad-based consumption triggers towards a production-driven “Build India” agenda.
“To attract FII, the Budget must ensure fiscal discipline, fiscal stability and policy continuity. Monetary stability and strong corporate earnings growth will be the key drivers. Global investors look for predictability, and India has an opportunity to position itself as the most stable emerging market destination,” Gaurav Bora said. stock market Pimpri-Chinchwad expert.
Bora said, “FIIs prefer clarity in tax policies. Sudden changes in capital gains tax, dividend taxes or surcharge structures create uncertainty. The government can: ensure stability under the capital gains tax framework; avoid retrospective taxation; simplify compliance for the portfolio of foreign investors.”
Policy continuity encourages long-term capital rather than short-term speculative flows and new reforms to strengthen market depth and transparency can attract global funds, he said.
Bora said monetary stability is an important factor for FIIs. “Even if equity returns are attractive, a sharp depreciation of the rupee can erode earnings. Policies that improve current account balance, boost exports and control inflation help stabilize the rupee and make India more attractive.”