In the past, certain budgets sent stock markets soaring, while others caused them to plummet. However, the stock market often loses value on Budget Day. In the previous ten years, the market has fallen on budget days nine times out of thirteen occasions, including interim budget days.

The stock market of every country is one of the economic barometers, which is why the Budget may now be delivered during market hours.

Stock prices are determined by the success of the listed companies as well as other economic factors such as liquidity, inflation rate, employment rate, GDP, and others.

Also read: Budget is an instrument for ‘Aatmanirbhar Bharat’: Nirmala Sitharaman in Rajya Sabha

Here’s how the markets have responded to Budget releases over the last decade:

2011

Pranab Mukherjee delivered the 2011 Budget on February 28. The stock market had reacted well to this Budget. The Sensex rose 122 points to 17,823, while the Nifty 50 rose 29.70 points to 5333.25.

2012

The 2012 Budget was given by then-Finance Minister Pranab Mukherjee, and it was his final budget. The stock market, on the other hand, responded badly to the Budget. The BSE Sensex was 444 points lower than its intraday high of 17,871. The Nifty 50 fell 62.60 points as well. The Sensex and Nifty finished the day at 17,466.20 and 5,317.90, respectively.

Also read: Budget 2021: Key stocks that moved most on February 1

2013

The stock market responded badly to Chidambaram’s presentation of the 2013 Budget. The BSE Sensex fell 403.26 points to 18,861.54 at the closing. The Nifty 50 dropped 141.3 points to 5,693.05 points.

2014

Due to the fact that 2014 was an election year, there were two budgets. Finance Minister P. Chidambaram delivered the interim Union Budget on February 17. The markets responded unfavourably to the Budget, and the day ended in losses. The BSE Sensex was 28.37 points lower than its intraday high of 20,492.43. The Nifty 50 index was down 7.35 points from its intraday high of 6,080.65 points. The Sensex and Nifty finished the day at 20,464.06 and 6,073.30, respectively.

This was Jaitley’s first budget as finance minister, and it was delivered on July 10, following the Bharatiya Janata Party’s election to power in May of that year. The markets responded unfavourably to the Budget, and the stock market ended down for the day. The BSE Sensex fell 72.06 points to finish at 25,372.75. The Nifty 50 was also down 17.25 points, closing at 7,567.75.

2015

Jaitley presented the 2015 Indian Union Budget on February 28, a Saturday. The financial markets are normally closed on Saturday, but for the budget presentation, they were kept open from 9.15 a.m. until 3.30 p.m. Markets reacted favourably to the Budget, however it resulted in a loss owing to profit booking. At 11 a.m., the BSE Sensex was up 148.99 points, but it ended the day down 49.83 points, at 29,361.50. The Nifty 50 also ended the day with a loss of 11.2 points, closing at 8901.85 points.

2016

Jaitley delivered the 2016 Indian Union Budget on February 29. Markets responded unfavourably to the Budget, and the trading day ended with a loss. The BSE Sensex fell 152.30 points to settle at 23,002.00. The Nifty 50 dropped 42.70 points to settle at 6987.05.

2017

Jaitley moved the date of the presentation of the 2017 Indian Union Budget to February 1 for the first time. Since then, the first of February has been the traditional date for Budget presentations. The markets reacted favourably to the Budget, with the largest intraday increase since the Budget day trading in 2010. The BSE Sensex finished at 28141.64, up 485.68 points. The NSE Nifty 50 gained 155.10 points and finished at 8716.40 points.

2018

Arun Jaitley, the then-Finance Minister of India, delivered the 2018 Indian Union Budget. It was his final Budget speech. The stock market responded unfavourably to this budget, although it only resulted in small losses for the day. The BSE Sensex fell 58.36 points to settle at 35,906.66. The NSE Nifty 50 index decreased 10.80 points to 11,016.90.

2019

Due to the fact that 2019 was an election year, there were two budgets. On February 1, 2019, Power Minister Piyush Goyal delivered the 2019 Indian Union Interim Budget. The markets reacted favourably to the Budget. The BSE Sensex rose 212 points to 36,469.43. The Nifty 50 index rose 62.7 points to 10,893.65 points.

This was the first time a woman finance minister, Sitharaman, presented the Indian Union Budget since Indira Gandhi did it in 1971 when she had the extra finance ministry. On July 5, 2019, it was presented. The stock market, on the other hand, responded badly to this Budget. The BSE Sensex fell by 987.96 points but recovered marginally to conclude with a loss of 394.67 points at 39,513.39. The NSE Nifty 50 fell 135.60 points to settle at 11,811.20 points.

2020

Despite the fact that the Budget for 2020 was announced on a Saturday, the markets stayed open. The stock market responded poorly to Sitharaman’s second Budget, with the day experiencing the sharpest Budget day drop in 11 years. The BSE Sensex fell by 987.96 points to settle at 39,735.53. The NSE Nifty 50 dropped 300.25 points from its beginning to finish at 11661.85 points.

2021

Due to the current Covid-19 outbreak, the Indian Union Budget was delivered online for the first time in a ‘Made in India’ tablet gadget. The markets reacted well to Finance Minister Nirmala Sitharaman’s Budget presentation, rallying with significant gains. The BSE Sensex rose by a staggering 2314.84 points to settle at 48,600.61. The NSE Nifty 50 gained 646.60 points and finished at 14,281.20 points.

Also read: Budget 2022: Prime Minister Narendra Modi describes Union Budget as people-friendly and progressive

2022

The markets reacted well to Finance Minister Nirmala Sitharaman’s Budget presentation, rallying with significant gains. Indian equity benchmarks ended higher with gains of over a per cent on Monday. Sensex rose 813.94 points or 1.42% to 58,014.17 and Nifty was up by 237.90 points or 1.39% to 17,339.85.