The start of the Budget session brings hope to the nation as several economic reforms are expected to be introduced. But the pre & post-budget session has become a disaster for the Stock Market.
As we look in the previous records the Budget session increases the fluctuations in the Market. If we look at the last 10 years the Market had greatly fallen during the Budget session. The Bombay Stock Exchange Sensex has fallen by 0.16% to 2.43% six times and has risen by 0.48% to 1.76% in the remaining 4 days of presentation of Union Budget in the last 10 years. There have been four sessions when the Sensex plunged by 4%.
Let’s take a look at how the market moved historically during the Budget session:
- In 2011 when the Budget was presented by the then FM Pranab Mukherjee, the Sensex rose by 0.69%. In 2012, when Mukherjee again presented the Budget, the Sensex fell by 1.19%.
- In 2013, FM P Chidambaram presented the Union Budget, the Sensex tanked 1.52% & in 2014 the Sensex fell by 0.28% percent.
- In 2015, when FM Arun Jaitely presented the Budget the Sensex ended 0.48% higher. In 2016 when Jaitley again presented the Budget the Sensex ended 0.66% lower. Sensex recorded a historic 1.76% gain in 2017 during the Budget session. The 2018 was the last Budget presented by Arun Jaitley, the BSE Sensex ended 0.16% lower.
- The 2019 Budget was presented by the acting finance minister, Piyush Goyal. Sensex ended at 0.59% higher.
In 2019 when the BJP again came to power, Nirmala Sitharaman was appointed as the finance minister. She ditched the tradition of bringing the Budget in a red briefcase instead brought the documents in a Bahi Khata (draped in red cloth). The Sensex ended 2.43% lower during the Budget session of 2020. In 2021 the Sensex ended 4.89% higher on the Budget day.
