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Union Budget 2025: Finance Minister Nirmala Sitharaman will present the budget for the financial year 2025-26 today ( February 1). Typically, the stock market is closed on Saturdays, as the trading days are Monday to Friday. However, in view of the budget, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have announced that the stock markets will be open on the day of the budget. On this day too, trading will be done like normal days.
Let’s take a look at the mood of the Indian stock market on the day of the budget. We have gathered data for the last 10 years regarding the NSE’s major index, Nifty 50. From 2014 to 2024, a total of 14 budgets were presented, including 3 interim budgets. Out of these, the market closed in the red (with a decline) 8 times, while it closed in the green (with a rise) 6 times.
Sensex performance on Budget day
On the day of the interim budgets in 2014 and 2019, the market closed in the green, showing a positive trend. However, in 2024, the market closed in the red. In one instance, there was a significant jump of 4.74 per cent in the Nifty 50, while in another, the index witnessed a sharp decline of 2.51 per cent. Let’s now take a look at the complete data for these years.
2014 Interim Budget: +0.41%
2014 Full Budget: -0.23%
2015 Full Budget: +0.65%
2016 Full Budget: -0.61%
2017 Full Budget: +1.81%
2018 Full Budget: -0.10%
2019 Interim Budget: +0.58%
2019 Full Budget: -1.14%
2020 Full Budget: -2.51%
2021 Full Budget: +4.74%
2022 Full Budget: +1.37%
2023 Full Budget: -0.26%
2024 Interim Budget: -0.13%
2024 Full Budget: -0.12%
Market depends on government announcements
The mood of the stock market on the day of the Union Budget can be quite volatile, as it largely depends on investor sentiment, the expectations surrounding the budget, and the key announcements made by the Finance Minister.
On budget day, stock market investors closely follow the announcements made by the government. The market’s response largely depends on these announcements. If the government introduces measures that benefit industries and businesses, it often leads to a surge in buying activity, with a lot of excitement in the market. Conversely, if the announcements are not favorable or don’t meet investor expectations, it can lead to selling pressure, causing disappointment among market participants.
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