Union Budget 2025: How has the Nifty50 performed on budget day over 10 years?Union Budget 2025: How has the Nifty50 performed on budget day over 10 years?

Introduction:

Over the years, the NIFTY50 has shown mixed reactions on Budget Day, with market movements influenced by key policy changes. In July 2024, the index fell 0.12%, driven by higher STT on F&O trades and a hike in capital gains tax. 

NIFTY 50 performance on Budget Day: 

The interim Budget in February 2024 also saw an adverse market reaction, with NIFTY50 slipping 0.13%. The absence of significant tax changes led to subdued sentiment, while stocks like L&T & Bajaj Finance dragged the index. However, post-budget recovery was observed, with a 0.72% gain the next day.

The 2023 Budget led to a 0.26% fall in the NIFTY50, extending the downtrend to the following day. In contrast, the 2022 Budget drove a 1.37% surge as investors cheered pro-growth policies. The rally continued post-Budget, with a 1.16% gain.

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The most substantial Budget Day rally occurred in 2021, with the NIFTY50 soaring 4.74%. Optimism over post-pandemic recovery and bank recapitalisation drove gains. The rally continued the next day, led by insurance and infrastructure stocks.

The 2020 Budget disappointed markets, with the NIFTY50 plunging 2.51% as expectations were unmet. Post-Budget, the index recovered slightly with a 0.39% gain. The 2019 Budget saw a 1.14% drop, extending losses by 2.14% the next day.

The interim Budget 2019 saw a 0.58% gain in the NIFTY50, driven by optimism over supportive measures. The rally extended post-Budget, with a 0.17% gain. In 2018, the index slipped 0.10%, followed by a sharp 2.33% fall the next day.

The 2017 Budget lifted the NIFTY50 by 1.81%, supported by investor-friendly measures. The index maintained positive momentum post-budget, rising 0.20%. In 2016, the NIFTY50 fell 0.61% but rebounded with a substantial 3.37% gain the next day.

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The 2015 Budget saw a 0.65% rise in the NIFTY50 as fiscal discipline boosted sentiment. The gains continued post-budget, with a 0.62% increase. In 2014, the index dropped 0.23% on Budget Day, extending losses with a 1.43% fall.

The interim Budget 2014 saw a 0.41% gain in the NIFTY50 as stability measures reassured investors. The rally continued, with a 0.89% gain the next day. Overall, Budget Day’s performance reflects investor sentiment and policy impact.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.