share market
The Union Budget of the country is going to be presented on Sunday, 1st February. The budget countdown has also started. In such a situation, the stock market is going to open on Sunday also. But do you know how the market has behaved on budget days in the last 5 years? If you don’t know then let us give you detailed information about it. Market data is given on the budget day from 2021 to 2025.
From the economic point of view, the budget is the biggest event or day for the country. The decisions that are taken on this day. Its impact is visible directly and indirectly on the economy throughout the year. In such a situation, the stock market also sees the signals of the budget in its own way and reacts accordingly.
Market of last 5 years
- Status of year 2021- When the budget was presented in the year 2021, the Indian market was booming that day. On February 1, 2021, Finance Minister Nirmala Sitharaman presented the budget to bring the economy affected by the pandemic back on track. The main announcements included a development financial institution with a capital of Rs 20,000 crore, incentives for digital payments, policies like Jal Jeevan Mission to supply water to all, which had a positive impact on the market. BSE Sensex rose 2,314.84 points to 48,600.61 and NSE Nifty 50 rose 646.60 points to 14,281.20, which was the best budget day performance in the last 20 years.
- Union Budget 2022- Finance Minister Nirmala Sitharaman presented Budget 2022 to lay the foundation for post-pandemic economic growth. In this, emphasis was laid on areas like 5G, digital currency, infrastructure, agriculture and education. The market took it in a positive way. Sensex rose 849.40 points to close at 58,862.57 and Nifty rose 237 points to 17,576.85. There was good growth in Pharma, FMCG, Metal, IT and Realty sectors. Textile stocks rose due to custom duty cut, but auto and oil-gas stocks fell. PSU banks were affected by rising bond yields due to high fiscal deficit.
- Union Budget 2023- On 1 February 2023, Nirmala Sitharaman presented a budget with a focus on strong public finances and a strong financial sector. The market reaction was mixed. The Sensex rose by more than 1,100 points intraday, but ultimately closed at 59,708.08, up only 158.18 points. Nifty fell 45.85 points to 17,616.30. There was uncertainty among investors about the immediate impact of the budget, due to which a lot of intraday volatility was seen. There was different performance in different sectors.
- Union Budget 2024- The announcement of increasing capital gains tax and tax on derivative trading in the budget of 2024 led to a sharp fall in the market. Nifty 50 and Sensex fell by about 1% each. The Indian rupee reached a record low of 83.69 against the US dollar. Short-term capital gains tax was increased from 15% to 20% and long-term from 10% to 12.5%. Long-term exemption limit increased from Rs 1 lakh to Rs 1.25 lakh. Standard deduction for salaried people increased from Rs 50,000 to Rs 75,000 and the slabs of the new tax regime were changed.
- Union Budget 2025- Nirmala Sitharaman presented the budget for the financial year 2025-26, which contained many measures to increase economic growth, productivity and stability. Various industries were affected. There was volatility in the market on Budget Day. Nifty 50 fell 26.25 points (-0.11%) to close at 23,482.15, while Sensex rose marginally 5.39 points (+0.01%) to 77,505.96. Overall the market reaction was mixed and calm, in which no major changes were seen.