.png?width=1200)
The monumental Lok Sabha elections that threw open an interesting set of results saw the Indian markets in deep red on June 4. This resulted in the major depletion of resources and the progress of the marquee indices and the stocks listed on the exchanges.
Full Budget and Dalal Street
After the mini-chaos that were witnessed, the larger paradigm that appears to have recuperated is now gearing up for the Union Budget. This is a full budget, as the interim budget before the elections was presented on February 1.
The full budget for this fiscal year, FY25, will be presented on July 23. The session will start in the Indian Parliament on July 22. The budget will be presented by Union Finance Minister Nirmala Sitharaman. With this budget, Sitharaman would have a record of presenting seven consecutive budgets. |
The full budget for this fiscal year, FY25, will be presented on July 23. The session will start in the Indian Parliament on July 22. The budget will be presented by Union Finance Minister Nirmala Sitharaman. With this budget, Sitharaman would have a record of presenting seven consecutive budgets.
When it comes to these budgets, that is, budgets that are brought in by new governments, they tend to not wake the markets up as one would expect. This is what has been observed in the past two instances, when the first and second Modi governments were sworn in, and the markets subsequently recorded a lukewarm reaction.
In 2014, when Narendra Modi's first became the PM of the country, the cabinet's first-ever Union Budget was presented by then FM, late Arun Jaitley. The full budget for FY15 was presented on July 10. On that day, the markets had a lukewarm day as BSE Sensex, which opened at 25,513.74 points, hit a high of 25,920.46, only to slump to the low of 25,117.00 before closing at 25,372.75 points, with a decline of 72.06 points or 0.28 per cent. |
In 2014, when Narendra Modi's first became the PM of the country, the cabinet's first-ever Union Budget was presented by then FM, late Arun Jaitley. The full budget for FY15 was presented on July 10.
On that day, the markets had a lukewarm day as BSE Sensex, which opened at 25,513.74 points, hit a high of 25,920.46, only to slump to a low of 25,117.00 before closing at 25,372.75 points, with a decline of 72.06 points or 0.28 per cent.
Although the NSE Nifty also had an equally bleak day, the index that opened at 7,589.50 hit a high of 7,731.05, while it hit a low of 7,479.05, before eventually closing at 7,567.75, dropping in value by 17.25 points or 0.23 per cent.
The scene was no different 5 years later, as the marquee indices once again dropped below previous openings.
Markets Slumped in 2019
This time, the full budget of the newly sworn-in government or Modi 2.0, was presented by the new (and incumbent) FM, Nirmala Sitharaman. Sitharaman presented her budget on July 5, 2019, after the BJP retained power after a thumping victory in the 2019 Lok Sabha polls.
On this occasion, the BSE Sensex opened at 39,990.40 points. The index hit the high point of 40,032.41 and slumped to the low of 39,441.38, before closing at 39,513.39. This marked a decline of 394.67 points or 0.99 per cent. | File
On this occasion, the BSE Sensex opened at 39,990.40 points. The index hit the high point of 40,032.41 and slumped to the low of 39,441.38, before closing at 39,513.39. This marked a decline of 394.67 points or 0.99 per cent.
The NSE Nifty was no better, as the index slumped by over 1 per cent. Nifty opened at 11,964.75, hitting the low of 11,797.90 and the high of 11,981.75, before eventually slumping and closing at 11,811.15, decreasing by 135.60 points or 1.14 per cent.
It remains to be seen, whether this trend of post-result budget will be overturned. The markets are optimistic, but will they end in green on July 23? Only time will tell.
