Zerodha’s Nithin Kamath Cautions Traders Ahead of Budget 2025-26
As Union Budget 2025-26 approaches, Zerodha co-founder Nithin Kamath has warned traders to expect market volatility. Historical data shows that the stock market typically experiences significant fluctuations on budget day, with only eight instances in the last 25 years where movements were less than 1%.
Kamath urged caution, especially for active traders, advising them to reduce trade sizes during such eventful days. He also noted that Zerodha would allow Buy Today, Sell Tomorrow (BTST) trades on settlement holidays, including tomorrow, providing flexibility for traders.
In the previous budget session, markets saw mild volatility, with the Sensex and Nifty closing slightly lower. Over the years, budget days have shown sharp market swings, ranging from a 5.8% decline in 2009 to a 4.7% jump in 2021.