Budget 2023: How stock market has fared in the run-up to D-Day in past years
Sensex, Nifty50 Budget Day Return: The Indian stock market has mostly declined one month prior to the presentation of the Union Budget in Parliament over the past few years.
Sensex, Nifty50 Budget Day Return: Indian equity benchmarks have mostly suffered minor losses one month prior to the presentation of the Union Budget in Parliament over the past few years, reflecting a loss of risk appetite among investors ahead of the big day. From allocation to various sectors of the econnomy, fiscal prudence, market triggers or income tax changes, the countdown to the release of the Budget typically brings with it a flood of expectations — which generally finds the bulls weaker in their tug of war with the bears!
All eyes on Union Budget 2023-24
This time around, the Sensex and the Nifty50 have each lost more than two per cent of their value during the month before the Budget, as Dalal Street awaits what Finance Minister Nirmala Sitharaman has in store for the economy, the markets and the common man on February 1. (Catch latest on Union Budget 2023-24 and key highlights of Economic Survey 2022-23 here) | Image: Reuters
Sensex, Nifty historical data
Here's a summary of how headline indices have fared in the run-up to the Budget day in the past years:
Dalal Street awaits Budget 2023
The 50-scrip headline index has broadly moved within the 17,400-18,300 band in the month before the presentation of Union Budget 2023-24 in Parliament.
The Sensex has lost 1,290.8 points — or 2.1 per cent — during this period, having gyrated in a range of 2,693.5 points, between 58,699.2 and 61,392.7, during this period.
Headline indices inched lower ahead of Budget day in 2022
As of January 31, 2022, the Sensex had lost 239.7 points — or 0.4 per cent of its value — in one month.
The month saw the 30-scrip index touch 61,475.2 and 56,409.6 at the strongest and weakest intraday levels, in its unsuccessful attempts to take out a record high scaled in October 2021.
In 2021, Dalal Street entered the Budget day three per cent lower for the month
The Sensex lost 1,465.6 points in the month before February 1, 2021. | Image: Reuters
2020 was no different!
The Sensex gyrated within the 40,450-42,300 band before settling at 40,723.5 on January 1, 2020.
In 2019 as well, Nifty50 inched lower in the month before Budget
The index gave up 31.6 points or 0.3 per cent ahead of the big day.
An exception
Prior to the presentation of Budget 2018-19 in Parliament, the Nifty50 made wild swings in a range of more than 750 pts — between 10,404.7 and 11,171.6 — for a month.