Budget 2023: Union Finance Minister Nirmala Sitharaman will present the budget for the next fiscal year 2023-24 tomorrow, February 1. The market closed one day before the budget today. Domestic equity benchmark indices are in the green today. BSE Sensex has closed at 59550 and Nifty at 17662. However, if we talk about this whole month Sensex Almost 1300 points, 2 percent, and Nifty has also dropped by 2.5 percent, 445 points. However, this isn’t the first time the stock market has tended to weaken in the month leading up to the budget. In the last 10 years, ie from 2013 to now, the market had only strengthened twice in the last month of the budget.
The market was strong only twice
This has only happened twice in the past decade, when the stock market rallied in the month leading up to the budget. In 2017, the market had grown 4.6 percent in the month ahead of budget. According to this, the domestic market had recovered by 5.6 percent in 2018 in the previous month.
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Market situation in the last 10 years pre-budget month
2013- The Sensex weakened by about 3 percent.
2014- As this is an election year, the full budget for the next financial year was presented in July after the formation of the new government. In the first month, the sensex was down about half a percent.
2015- The Sensex was down about 1.15 percent.
2016- The Sensex fell about 6.1 percent.
2017- 4.6 percent jumping.
2018- The Sensex increased by 5.6 percent.
2019- As this is an election year, the budget for the whole year was presented in July. The Sensex declined 0.04 percent in the first month before the budget was announced.
2020- Sensex fell 1.28 percent.
2021- Sensex down 3%.
2022- Before the budget, the Sensex fell two percent.
2023- Sensex down more than 2%.
How was the market situation on budget day?
In the last 10 years, the markets have only closed in the green on the day of the interim budget 2014, 2015, 2047, 2019, budget 2021 and 2022. Again, the top speed was in 2021, when the market closed with a jump of about 4.7 percent. At the same time, it ended the past year with growth of 1.4 percent.
The state of the after-budget market
In the last ten years, after the budget, there has been a mixed mood in the market. The biggest gain came in 2016, when it grew about 10.7 percent in a month after the budget was presented. According to last year’s budget, the market had weakened about 4.5 percent in one month. After the budget was presented in 2021, the market had gained 3.4 percent in one month, but a year earlier, when the corona epidemic had not yet come, the market had 3.1 in a month after the budget was presented percent collapsed in 2020.
