Stock market indices such as Sensex and Nifty have reacted differently to Union Budget announcements from 2014 to 2024. Here is a brief description of the market reaction each year:
2014
In 2014, there was a lot of excitement in the stock market before the budget, as investors were optimistic about the economic policies of the new Modi government. On the day of the budget announcement, both the Sensex and the Nifty surged.
2015
Budget 2015 did not generate much buzz as the market was a little cautious. The response was tepid due to the lack of bold reforms and some expectations not being met.
2016
The 2016 budget was a mixed bag. The market reacted positively initially, but declined in the days following the announcement. A key moment was the surprise announcement of demonetization at the end of the year.
2017
The 2017 budget was considered farmer-friendly and focused on rural development, but stock markets reacted negatively on budget day due to concerns about the lack of a significant cut in corporate tax and other business-friendly policies. The Sensex and Nifty fell immediately after the announcement.
2018
This budget was considered a bit more populist, with more emphasis on welfare schemes, but it was not considered very favorable for the market. Investors were cautious.
2019
In 2019, the budget was presented after the Modi government was re-elected. The market expected more progressive reforms, and while the immediate response was positive, investors soon began questioning the sustainability of some of the proposals.
2020
The 2020 budget was expected to be a very important moment for reforms just before the onset of the pandemic. The market was initially upbeat, but as COVID-19 began to spread, investor sentiment changed dramatically. Budget expectations were subdued due to the impending economic crisis.
2021
The 2021 budget came amid the pandemic and had a lot of focus on healthcare and infrastructure. Despite some optimism about the government’s stimulus packages, the market showed cautious optimism initially. The Sensex and Nifty fluctuated but rallied sharply in the days following the budget.
2022
The markets were slightly more optimistic due to the improvement in the economy in 2022. The budget focused on growth, infrastructure and green energy, which had a positive impact on the stock market in the short term.
2023
In 2023, with the economy continuing to recover, the budget had a favourable outlook for growth. While there were some global headwinds, the market responded positively, with the Sensex and Nifty rallying on Budget day, driven by expectations of more reforms and fiscal consolidation.
2024
The 2024 budget came just before the general elections and emphasized on economic stability, employment and infrastructure. The stock market reacted cautiously but remained positive in the long run. However, it was not a budget that led to a huge surge.
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