Historical Movements of Indian Stock Market on Budget Days: The Indian stock market has been on a continuous bull run for the past few months, and brokerage Jafferies predicts that this bullish trend will persist. As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2024-25 on Tuesday, July 23, the domestic equity market is eagerly awaiting key announcements. Here are the historical movements of the Indian stock market on Budget days since 2013.
Historical Movement in Stock Market on Budget Days Since 2013
Budget 2013
- Highlights: Higher revenue projections from divestment and spectrum sales, cut in Securities Transaction Tax on mutual fund and equity futures transactions.
- Market Reaction: The Indian stock market declined 1.5%.
- Date: February 28, 2013
- Intra-day swing: 2.8%
Interim Budget 2014
- Market Reaction: The domestic equities market rose 0.5%.
- Date: February 17, 2014
- Intra-day swing: 0.8%
Full Budget 2014
- Highlights: First budget by the newly formed Narendra Modi government.
- Market Reaction: The Indian markets fell marginally by 0.3%.
- Date: July 10, 2014
- Intra-day swing: 3.2%
Budget 2015
- Highlights: Focus on health sector, medical education, establishment of institutions, solar power projects, and the Namami Gange project with Rs 2,037 crore allocation.
- Market Reaction: The BSE Sensex rose to close 0.5% higher.
- Date: February 28, 2015
- Intra-day swing: 2.3%
Budget 2016
- Highlights: Promise to double the income of farmers by 2022, Rs 9,000 crore grant to Swachh Bharat Abhiyan for rural sanitation.
- Market Reaction: The stock market fell 0.7%.
- Date: February 29, 2016
- Intra-day movement: 3.8%
Budget 2017
- Highlights: Income tax rate cut to 5% for individuals with income between Rs 2.5 lakh to Rs 5 lakh.
- Market Reaction: The Sensex surged 1.8%.
- Date: February 1, 2017
- Intra-day swing: 2.1%
Budget 2018
- Highlights: Steps towards high growth of over 8% with manufacturing, services, and exports.
- Market Reaction: The Indian stock market inched down by 0.2%.
- Date: February 1, 2018
- Intra-day swing: 2.1%
Interim Budget 2019
- Highlights: Major scheme for farmers, income tax sops, raised rebate under Section 87A to make annual income up to Rs 5 lakh tax-free.
- Market Reaction: The Indian market rose 0.6%.
- Date: February 1, 2019
- Intra-day swing: 1.5%
Full Budget 2019
- Highlights: First budget for Finance Minister Nirmala Sitharaman and the Modi 2.0 government.
- Market Reaction: The stock market declined 1%.
- Date: July 5, 2019
- Intra-day movement: 1.5%
Budget 2020
- Highlights: Tax hike on petrol and diesel, raised import duty on gold, additional surcharge on super rich, tax on high-value cash withdrawals, corporate tax reduction, sops to housing sector, startups, and electric vehicles.
- Market Reaction: The market tumbled 2.4%.
- Date: February 1, 2020
- Intra-day movement: 3.2%
Budget 2021
- Highlights: Measures to revive the Indian economy amid the pandemic.
- Market Reaction: The stock market surged 4.7%.
- Date: February 1, 2021
- Intra-day movement: 4.9%
Budget 2022
- Highlights: Focus on infrastructure development, domestic defence sector, capital expenditure boost.
- Market Reaction: The stock market jumped 1.4%.
- Date: February 1, 2022
- Intra-day swing: 1.4%
Budget 2023
- Highlights: Income tax rebate raised to Rs 7 lakh for the new tax regime, standard deduction of Rs 50,000 for the new tax regime, capex boost.
- Market Reaction: The stock market marginally fell by 0.25%.
- Date: February 1, 2023
- Intra-day swing: 3.6%
Interim Budget 2024
- Highlights: Presented by Finance Minister Nirmala Sitharaman before the elections.
- Market Reaction: The benchmark stock market indices ended lower on the day.
- Date: February 1, 2024
- S&P BSE Sensex: Ended 106.81 points lower at 71,645.30
- NSE Nifty50: Settled 28.25 points lower at 21,697.45
Recent Market Trends
This week, the momentum in Nifty and Sensex softened as profit booking occurred ahead of the Union Budget 2024 presentation next week. The Budget is expected to address the needs and expectations of a diverse range of stakeholders, including common taxpayers, investors, industries, farmers, women, and major industry sectors such as FMCG, real estate, and technology.
Currently, the BSE Sensex and NSE Nifty are trading at their record-high levels.
