The pre-budget expectations will start building up and corresponding sectors may see increased interest, analysts said.
Moreover, the stock market will be open on the Budget day, February 28, and trading would be conducted during normal hours from 0900 hrs to 1530 hrs, despite it being a Saturday. The stock market is generally closed on Saturdays and Sundays, except for special circumstances.
"We expect markets to remain volatile on account of key event of Railway and Union Budget along with the expiry of February series," an expert said.
Market trading would also be influenced by investment trend by overseas investors, movement of rupee against the dollar and crude oil price.
"Movement of index in near term will remain on further reform initiatives to be taken by the government in the upcoming budget on February 28, 2015. In near term Nifty is likely to remain volatile amid February contract expires but expected to continue its uptrend," said Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited.
Parliament will commence the budget session on February 23. The Railway Budget will be presented on February 26, which will be followed by the Economic Survey on February 27 and Union Budget on February 28.
"For this year's budget, slated to be presented on February 28, markets are expecting the government to stick to the ambitious fiscal consolidation path it has inherited and yet revive economic growth. Expectations are sky high," said Pranjul Bhandari, Chief India Economist, HSBC.
"We think the impact of the budget on the markets has been waning over the years since lot of reforms happen outside the budget and tax changes are marginal," said Jyotivardhan Jaipuria, Research Analyst DSP Merrill Lynch (India).

Over the last week, the BSE benchmark Sensex rose by 136.48 points to 29,231.41.
On the global front, Federal Reserve Chair Janet Yellen's semi-annual monetary policy testimony to Senate Banking Committee, is scheduled on Tuesday.
In Europe, investors will closely watch the developments in Greece.

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