Budget 2024: How will the stock market move on budget day?

Budget 2024: India's stock markets have been rising steadily for the past few months. Brokerage company Jefferies estimates that this upward trend will continue. Finance Minister Nirmala Sitharaman is preparing to present the Union Budget 2024-25 on Tuesday, July 23. At the same time, the domestic stock market is eagerly awaiting important announcements. In February 2014, the Sensex rose 0.48 per cent on the day of the interim budget.

Budget 2024: Will the market fall?

According to Christopher Wood, Global Head of Equity Strategy at Jefferies, despite the strong rally in recent years, the Indian stock market is still in the early stages of developing strong equity. With Budget 2024 scheduled to be announced on July 23, any change in the capital gains tax on equity could bring significant improvement in the market, possibly as was seen after the results of the Lok Sabha elections on June 4.

The market will depend on retail and mutual fund investors

Wood believes that the growing number of retail investors, especially in mutual funds, will strengthen the stock market. Giving an example, he said that despite the BJP's electoral setback, the stock market has rebounded sharply. There has been a 13.3% gain since June 4. This sharp recovery highlights the growing influence of retail investors, who have continued to buy despite the sell-off.

According to a Business Today report, the nature of the Indian stock market is changing. Retail investors and mutual funds have increased their stake from 16.6% at the end of FY21 to 18.4% by the end of FY24. In contrast, foreign institutional investors (FIIs) ownership has declined from 22.1% to 19.9% ​​​​in the same period.

Let's know how the stock market traded on budget day in the last 10 years?

Budget 2014

When PM Modi formed his first government after the interim budget in 2014, the then Finance Minister Arun Jaitley presented the full budget on July 10. On the day of the budget, the Sensex closed with a decline of 0.28 percent.

Budget 2015

The then Finance Minister Arun Jaitley presented the Union Budget on February 28. On the day of the budget, the Sensex closed with a gain of 0.48 percent.

Budget 2016

The then Finance Minister Arun Jaitley presented this budget on February 29. The Sensex closed with a decline of 0.66 percent.

Budget 2017

The then Finance Minister Arun Jaitley presented the budget on February 1 in 2017. On the day of the budget, the Sensex closed with a gain of 1.76 percent.

Budget 2018

The then Finance Minister Arun Jaitley presented the budget on February 1. This was his last budget. On that day, the market closed with a marginal decline of 0.16 percent.

Budget 2019

When Prime Minister Narendra Modi formed the government at the Centre for the second time in 2019, Finance Minister Nirmala Sitharaman presented the full budget for the financial year 2019-20 on July 5. On July 5, the day of the full budget, the market closed with a decline of 0.99 per cent.

Budget 2020

Finance Minister Nirmala Sitharaman presented the full budget for the financial year 2020-21 on February 1. On that day, the Sensex closed with a decline of 2.43 per cent.

Budget 2021

The budget speech of Finance Minister Nirmala Sitharamanwas well liked by the stock market. At the end of trading, the Sensex closed with a gain of 5 per cent.

Budget 2022

The budget presented by Finance Minister Nirmala Sitharaman on February 1, 2022 was also well liked. The Sensex closed with a gain of 1.36 per cent on that day.

Budget 2023

The stock market witnessed a lot of volatility during the budget speech of Finance Minister Nirmala Sitharaman on February 1, 2023. The Sensex closed with a gain of 0.27 percent but the Nifty closed in the red.