As February approaches, the Indian financial system stands on the cusp of a defining moment. While in other months the weekends offer a complete trading holiday, in February, there is a working Sunday due to the announcement of the Union Budget on February 1.Although February does not have any trading holidays, the interaction between settlement cycles and regional bank holidays necessitates that investors plan their investments accordingly. The following is a detailed explanation of the trading holiday falling in February 2026, special session, weekend holiday, clearing and settlement holidays, and bank holidays.Stock market holidays in Feb ‘26 on weekdaysFor the equity, derivative, currency and commodity segments on the NSE, BSE, MCX and NCDEX, there will be no additional weekday trading holidays in February 2026. While the festival of Mahashivratri falls on February 15, 2026, it occurs on a Sunday, and thus, there is no disruption to the regular Monday-to-Friday trading schedule.The Sunday budget special trading sessionThe exchanges have decided to keep the markets open on Sunday, February 1st, for the presentation of the Union Budget by the Finance Minister, Nirmala Sitharaman. To facilitate real-time price discovery and allow investors to react immediately to policy announcements, NSE and BSE will have a pre-open session, i.e., between 9:00-9:08 am and a normal trading session between 9:15 am-3:30 pm.Along with this, the commodity derivatives segments would be open as usual for the morning trading schedule. The regular trading session of the commodities exchanges will be between 9:00 am and 5:00 pm.Although the trading is active on Budget Day, it is still a settlement holiday. This implies that trades executed on Sunday will be settled according to the normal T+1 cycle beginning on the next working day.You must also check Last 15 years market trends on Budget DayStock market holidays in Feb ‘26 on weekendsThe NSE, BSE, MCX and the NCDEX are closed on all Saturdays and Sundays. However, Sunday, February 1, 2026, is an exception as the exchanges will have a special live trading session for the Union Budget 2026 announcements. The following table has February 2026 weekend dates and how the market is faring on those days: DateDayMarket StatusRemarksFeb 7, 2026SaturdayClosedStandard WeekendFeb 8, 2026SundayClosedStandard WeekendFeb 14, 2026SaturdayClosedStandard WeekendFeb 15, 2026SundayClosedMahashivratri and Standard WeekendFeb 21, 2026SaturdayClosedStandard WeekendFeb 22, 2026SundayClosedStandard WeekendFeb 28, 2026SaturdayClosedStandard Weekend Clearing and settlement holidays in Feb ‘26Clearing Holiday is a day on which the stock markets are open for trading, but the banks/clearing houses remain closed. This impacts the payment of funds and the availability of payouts.February 1, 2026 (Sunday) has a special trading session due to budget announcements, but since it is a Sunday, this session will be treated as a settlement holiday; trades will be settled on the next working day.February 19, 2026 (Thursday) will be observed as a settlement holiday for Chhatrapati Shivaji Maharaj Jayanti.Bank holidays in Feb '26Bank holidays affect banking channels such as NEFT and RTGS for margin funding and IPO applications. Apart from the regular second and fourth Saturdays (Feb 14 and Feb 28), Sundays (Feb 1, Feb 8, Feb 15, Feb 22 ), there are no regional bank holidays in February.Impact of bank holidays on the stock marketWhile stock exchanges can be open on some of the bank holidays, bank closures present many challenges for market participants, such as:Delayed fund transfers: During regional bank holidays, services such as NEFT and RTGS may not be available in specific states. While UPI works 24/7, internal bank procedures sometimes delay large transfers.Margin requirements: If market participants need to add funds to settle margin calls on open F&O positions, delays in transferring funds due to bank holidays could add to margin shortfalls and auto-square-offs.Mutual fund orders: Settlement for purchase and redemption is tied to the banks' working days. Orders that are placed on a bank holiday will be executed on the next business day, which will affect the NAV allotment.IPO and NFO Mandates: UPI authorisations and refunds in case of IPOs can be delayed if bank holidays fall in the middle of the subscription deadline.What should investors do?To avoid the disruptions during the trading activities in the busy February schedule, market participants should plan systematically, such as:Pre-fund accounts: Ensure that their trading account has a sufficient balance, specifically for the Sunday budget session.Beware of last-minute SIPs: In case the SIP date falls on a weekend or a bank holiday, make sure to add funds in advance to avoid any delays.Use UPI for small top-ups: For retail traders, UPI is the best way of transferring money instantly during weekends and regional holidays.Check F&O expiry: Be aware that the high volatility on Feb 1 (Budget Day) may be accompanied by early position rollovers for the February month. So, keep yourself updated with upcoming F&O expiries in advance.To concludeFebruary 2026 is a month full of strategic importance marked by the Budget on the Sunday session. For investors, this means that the traditional weekend cooling-off period will be replaced by a high-volatility trading event on February 1.To avoid any difficulties, market participants should pre-fund their accounts and plan for trading holidays. Staying updated on these dates enables market participants to effectively manage margin requirements and help avoid the risks of auto-square-offs on high-stakes movements in the markets.