How Nifty50, Sensex, and Nifty Bank have performed on Budget day in past few years — A recap
According to Zee Business research, in the last eight years, the market has ended the Budget day in the red only on two occasions: in 2020 and in 2016.
Indian equity benchmarks Sensex and Nifty50 finished the Budget day on a mixed note for the first time in eight-odd years in 2023. While the Sensex rose 0.3 per cent at the end of the wild session on Dalal Street, the Nifty50 declined 0.3 per cent – thanks to steep losses in two of Adani group stocks, Adani Enterprises (ADANIENT) and Adani Ports (ADANIPORTS).
Headline indices a mixed bag — a rare sight to see on a Budget day
A Budget cheer sent the headline indices soaring around two per cent each as the finance minister delivered on hopes of a wholesome, but the Nifty50 failed to stay in the green at the end of the wild day on the Street.
Image Source: Zee Business
Note: Budget Day - closing basis data in percentage
What dragged the Nifty50 to the red?
The two Adani stocks are part of the Nifty50 basket, and not the 30-scrip Sensex pack. Simply put, sharp weakness in both the stock weighed on Nifty50, preventing the 50-member headline index from rising above the flatline at the close.
Image Source: Zee Business
Note: Budget Day - closing basis data in percentage
Market tends to rise on Budget day, going by recent past
According to Zee Business research, average growth in the Indian market excluding the latest Budget is estimated at 0.9 per cent.
Image Source: Zee Business
Note: Budget Day - closing basis data in percentage
Gains in 2021 and 2022
In 2022 and 2021, the Indian market managed to secure gains of 1.5 per cent and five per cent on the Budget day respectively, according to Zee Business research.
Image Source: Zee Business
Note: Budget Day - closing basis data in percentage
Budget day in 2021 was ruled by banking bulls
The Budget day on 2021 was also marked with one of the strongest spikes in the banking index, with heavyweights IndusInd Bank, ICICI Bank and SBI seeing gains to the tune of 10-15 per cent.
Image Source: Zee Business
Note: Budget Day - closing basis data in percentage
A bad Budget day on D-Street
According to Zee Business research, in the last eight years, the market has ended the Budget day in the red only on two occasions: in 2020 and in 2016.
Image Source: Zee Business
Note: Budget Day - closing basis data in percentage