Union Budget 2021 India: The Finance Minister has promised a ‘never before’ like Union Budget this time in the wake of the coronavirus pandemic.
So far Nirmala Sitharaman’s Budget day speeches have failed to cheer Dalal Street.
Indian Union Budget 2021-22: As we step into the new year after a year that was ransacked by the pandemic, eyes will now be glued on Finance Minister Nirmala Sitharaman as everyone gears up for the Union Budget 2021. The Finance Minister has already promised a ‘never before’ like Union Budget. It will also be interesting to see how stock markets perform on the day Union Budget is unveiled this year. So far Nirmala Sitharaman’s Budget day speeches have failed to cheer Dalal Street. But that has not always been the case.
At the beginning of this year when Nirmala Sitharaman opened her ‘bahi-khata’ to announce measures such as shifting dividend distribution tax to individuals from companies and introducing new option income tax rates, Sensex and Nifty were not impressed. S&P BSE Sensex opened at 40,753 on February 1 for the Union Budget and closed at 39,735. The Nifty 50 had opened at 11,939 and slipped to close at 11,661. During the week, after the budget, both Sensex and Nifty did re-gain almost all their budget day losses.
Union Budget 2019-20
Nirmala Sitharman’s first Union Budget was presented on July 5, 2019. This was also the first budget of the second term of the NDA government. Sensex had begun trading at 39,990 on the day while the 50-stock Nifty was at 11,946. It was the day when Nirmala Sithraman unveiled the Modi government’s $5 trillion economy goal. This had back then failed to cheer investors who sent the stock markets lower. This led to Sensex closing at 39,513 while Nifty ended at 11,811.
What went on to be Arun Jaitley’s last Union Budget saw Sensex and Nifty fall marginal on the day of the Budget. Overall the S&P BSE Sensex closed 142 points lower on the day while Nifty erased 28 points. In the week after the budget day, both Sensex and Nifty added to their losses as they continued to move lower with each passing day.
Union Budget 2017-18
This was the last Union Budget that brought smiles on the faces of Dalal Street investors. S&P BSE Sensex had on this day opened with 27,669 points and till closing was up at 28,141. The broader Nifty 50 was also seen zooming ahead going from 8,570 to 8,716 on the Union Budget day. The upward march charted by the benchmark indices was not limited to the Union Budget day but continued for the week ahead with Sensex closing at 28,334 and Nifty at 8,793.
Union Budget 2016-17
The second full budget of the Modi government saw Sensex and Nifty slip in the budget day. Sensex went from 23,238 at the beginning of the Budget day to 23,002 at the end of it, Nifty 50 was seen slipping 63 points to end the day lower at 6,987. However, the fall was reversed in the week ahead of the budget when both Sensex and Nifty zoomed, erasing all gains. A week later Sensex was at 24,646 while the Nifty 50 was at 7,485.