The stock market recorded a decline on the day the interim budget was presented in Parliament. Bombay Stock Exchange (BSE)’s sensitive index – Sensex witnessed a fall of more than 100 points.
National Stock Exchange’s Nifty also fell below 21700. How did the stock market view each budget in the last 10 years during Prime Minister Modi’s tenure? When did Sensex-Nifty take a dive? After which budget, there was a rise in the market due to the enthusiasm of businessmen and investors. Know in this news.
Finance Minister Nirmala Sitharaman presented the interim budget for financial year 2024-25 in a 45-minute speech on Thursday. The budget document is a document of the economic policies and vision of the government. The data recorded in it decides the condition and direction of Sensex and Nifty. An example of how much impact the interim budget has on the market was seen when stock market trading was sluggish on Thursday before the Finance Minister’s budget speech.
The impact of the budget became more clear when the Bombay Stock Exchange (BSE) Sensex fell 106.81 (-0.14%) points to close at 71,645.30 at the end of the day’s trading. On the other hand, National Stock Exchange’s Nifty also closed at 21,697.45 with a decline of 28.25 (-0.13%) points.
The impact on the market started becoming visible with the budget speech. On the occasion of huge fluctuations seen in the market on the day of Finance Minister Sitharaman’s budget speech, it is interesting to know how the market has been affected by the budget presented during the tenure of PM Modi. In fact, the interim budget to be presented before the Lok Sabha elections 2024 Although the budget provides for government and administrative expenditure for the next few months, the stock market was once again affected by this interim budget presented just before the general elections.
As soon as Finance Minister Nirmala Sitharaman started the budget speech in Parliament at 11 am on Thursday, the sensitive index of the stock market started showing the response oftraders and the market in reference to the government’s economic policy.
The data before the financial year 2024-25 also bears witness to the fact that the stock market does not give much profit to investors on the budget day.
Budget in election year 2024 and market condition a year before Impact of budget on stock market, fall/rise over the year 2024 February (Interim Budget) Sensex falls 106 points Nifty fell by 28 points, the stock market did not like the interim budget for the financial year 2024-25.
2023 February (Full Budget) Nifty down 0.26%; Closed at 17616 level. 0.27 percent movement in Sensex; Closed at 59,708 level. Sensex-Nifty momentum slowed down on the day of general budget speech.
If we look at the figures, on the day of presentation of the interim budget, the shares of companies listed in the Nifty 50 of the National Stock Exchange saw a decline seven times in the last 10 years. Only during the interim budget of 2014 and 2019, Nifty did not take a dive. Critics who keep an eye on economic matters believe that Nifty-50 remained quite volatile around the presentation of the budget. 4.9 percent movement was recorded in 2022. That means Nifty closed with a sharp rise of 4.7 percent in 2022.
In 2020, 3.3 percent movement was seen in Nifty on February 1. However, at the time of market closing, there was heavy profit booking and Nifty closed with a fall of 2.5 percent. Three finance ministers during PM Modi’s tenure, Nirmala Sitharaman will present the budget for the fifth time.
The focus is on key economic topics like capital expenditure targets, disinvestment plans, fiscal deficit, housing and railways. Budgetary allocations and tax laws, particularly those pertaining to capital gains, are some of the key elements influencing both the BSE Sensex and Nifty-50 stock markets.The highest rise in Nifty was seen in 2021 after the presentation of the budget in Parliament. However, the I index has declined in the last two years.
Finance Minister Nirmala Sitharaman will present the budget for the fifth time this time.It’s also noteworthy that three of PM Narendra Modi’s finance ministers—Arun Jaitley, Piyush Goyal, and Nirmala Sitharaman—presented budgets throughout the course of the previous ten years. Earlier, in the last year of the United Progressive Alliance (UPA) government (2013-2014), the then Finance Minister P Chithambaram had presented the budget.
No major policy announcements are generally expected in the interim budget. Experts hope that the Modi government will try to reduce the fiscal deficit while maintaining economic discipline. To achieve the target of reducing the deficit, the government will allocate more funds to sectors like infrastructure and defence. The main reason for the market decline is considered to be disappointment among investors.
In the last decade, the market made many records, but many times investors considered the economic policies of the government to be unclear and decided to withdraw money from the market. A big fall was also recorded in the market due to heavy profit booking.
General elections are to be held in April-May 2024.
The public is hoping for more relief on the tax front. However, corporate houses are hopeful that the Finance Ministry will continue its efforts to achieve the target of Rs 5 trillion economy.
Stock market related activities are continuously increasing in India. In such a situation, people associated with economic policies and the market are hopeful that this time the market will show a positive trend due to the announcements of the Finance Minister.
During the tenure of Modi government, only in the year 2016, the sensitive index of Sensex came below 30 thousand. Every year after 2017, the market witnessed a rise.
In the last seven years, the Sensex of Bombay Stock Exchange (BSE) has traveled from 34,137 to 63,588. The surge has almost doubled.
In December 2023, the market also touched the all-time high i.e. 70,146. At times, the index went beyond this due to record surge (Derived from the annual average)
For the first time in 2014, PM Modi’s government presented the general budget.
The then Finance Minister Arun Jaitley presented his first Union Budget on 10 July. Selling was seen in Nifty on the budget day. An important fact related to the 9 budgets presented during the tenure of Prime Minister Modi and the stock market is that after 2017, the Sensex never came below 30 thousand (average of the entire year). The stock market index, which shows the economic health of the country which is on the way to becoming a five trillion dollar economy, has reached more than 71 thousand in the last seven years.
budget 2015 In February 2015, Arun Jaitley presented the budget for the second time.
This year the market looked positive about the budget. Sensex closed with a gain of 0.7 percent. Selling was seen in Nifty after the presentation of the budget. A decline of about 4.6 percent was recorded in a month.
budget 2016 For the third consecutive year during the tenure of the Modi government, the budget did not live up to the expectations of the market. The market closed with a slight fall of 0.6 percent on the budget day. A strong rally of more than 10 percent was seen in Nifty. Which was the highest after 2011.
budget 2017 This budget was historic in many ways.
The government ended the tradition of presenting a separate railway budget. The Union Budget started being presented on February 1 this year. A lot of excitement was seen in the market this year.
The rise of 1.8 per cent was the biggest jump between 2011-2020 on the day of the Finance Minister’s budget speech.
Market condition on budget day in PM Modi’s first term Impact of budget on stock market, fall/rise over the year 2019 July 1.1 percent decline, many investors lost money 2018 July 0.10 percent decline, minor loss to investors 2017 February 1.18 percent rise begins to reach new heights.
0.6 percent rise on budget day 2015, not a big loss for investors 2014: 3.4 percent rise on budget day profit booking due to rise in stock market.