How has the Nifty/Sensex performed on Budget days?
Capital markets play a pivotal role in driving the modern economy, and no major economic powerhouse can function without a thriving capital market. In India, the Union Budget is an eagerly anticipated event for investors, both large and small, as it sets the tone for economic policies and financial outlook. In this article, we will delve into the historical performance of the Nifty and Sensex on Budget days, exploring whether the impact has reduced over time and how these key indices have reacted to budgetary announcements in the past.
Also Read: List of Finance Ministers Who Have Presented Union Budgets (1947-2024)
Contents
Has the Budget Reduced the Impact over Nifty/Sensex?
The Union Budget has traditionally been a significant market-moving event, shaping investor sentiment and influencing market trends. However, as mentioned in recent articles, the impact of the budget on equities has seen a diminishing trend over the years. While still crucial, the market’s response to budgetary announcements may not be as pronounced as in the past.
Investors, both bulls and bears on Dalal Street, keenly observe the budget for insights into the government’s economic vision and policies. With the modern economy’s complexity, the question arises: has the budget’s impact reduced over key indices like Nifty and Sensex?
How has the Nifty/Sensex performed on Budget days?
Let’s take a stroll through the last decade to understand how the Sensex, one of India’s key benchmark indices, has fared on Union Budget days:
| Year | Finance Minister | Sensex Performance |
|---|---|---|
| 2010 | Pranab Mukherjee | +1.08% |
| 2011 | Pranab Mukherjee | +0.69% |
| 2012 | Pranab Mukherjee | -1.19% |
| 2013 | P Chidambaram | -1.52% |
| 2014 | Arun Jaitley | -0.28% |
| 2015 | Arun Jaitley | +0.48% |
| 2016 | Arun Jaitley | -0.66% |
| 2017 | Arun Jaitley | +1.76% |
| 2018 | Arun Jaitley | -0.16% |
| 2019 | Nirmala Sitharaman | -0.99% |
| 2020 | Nirmala Sitharaman | -2.43% (highest decline in 11 years) |
| 2021 | Nirmala Sitharaman | +4.99% (Sensex: +2314.84 points, Nifty: +646.60 points) |
| 2022 | Nirmala Sitharaman | +2.98% (Sensex: +849.40 points, Nifty: +237 points) |
| 2023 | Nirmala Sitharaman | +0.26% (Sensex: +158.18 points, Nifty: -45.85 points) |
Conclusion:
As we anticipate the upcoming Union Budget, it’s clear that the Nifty and Sensex have experienced a variety of reactions over the years. The market’s response to budgetary announcements is nuanced and influenced by factors such as economic conditions, policy measures, and investor expectations. Understanding this historical performance provides valuable insights for investors navigating the dynamic landscape of the Indian stock market. Stay tuned for the upcoming #BudgetKaMatlab as we decode the market’s response to the Union Budget 2024!
