Budget 2024: How is the mood of the stock market on Budget day? See the trend of Sensex-Nifty

Share Market Reaction on Budget: Narendra Modi assumed power in the year 2014. A total of 12 budgets have been presented this year till July 2024. Two of these were interim budgets. The first interim budget was presented in 2019 and the second on 1 February 2024.

7 times stock market reaction was not good

Ajay Kedia of Kedia Advisory reports on the NSE data. According to the report, the stock market did not react well for a total of 7 times. The first full budget of the Modi government came on 10 July 2014. The Nifty fell by 0.23 percent to 7567.75 on the day. However, over the next 7 days, the Nifty rose 0.96 percent to 7640.45.

According to this report, the market reaction was positive on 25 February 2015, the second budget day of the Modi government. The Nifty edged up 0.06 per cent at 8767.25, albeit marginally higher. Seven days after the budget, the Nifty rose 1.77 percent to 8922.65.

The Nifty closed at 6987 down 0.61% on the day of the third budget presented on 29 February 2016. After seven days the stock market bounced back and the Nifty rocketed up 7.13 percent to 7485 levels.

On the day of Budget presentation on 1 February 2017, Nifty became a super fast train with a gain of 1.81%. The Nifty which closed at 8716 on the day, rose 0.60% to 8769 in the next 7 days. On the other hand in 2018 Nifty closed at 11016 level with a decline of 0.10% on Budget day. But in the next 7 days it decreased by 3.99%.

Market conditions on the day of Modi government's first interim budget

The Modi government presented the first interim budget on 1 February 2019. The Nifty rose 0.58% to close at 10893 on the day. A week later, it rose 0.46 percent to 10943. After this, Modi registered a resounding success in the 2019 elections and presented the first full budget of the second term on 5 July 2019. The market did not react well on the day and the Nifty closed down 1.14% at 11811. Even after the next seven days, the market did not recover from the decline and fell by 2.19 percent to 11552 level.

Market conditions after budget and next seven days

1. On Budget day on 1 February 2020, Nifty closed at 11661 with a dive of 2.51%. It closed at 12098 with an increase of 3.34% in the next seven days.
2. 1 February 2021 is the day of the Budget, the stock market surged. The Nifty rose 4.74 percent to 14281. It rose 5.84% to 15115 in the next seven days.
3. On the day of budget presentation on 1 February 2022, Nifty rose 1.37% to 17576 and in the next 7 days it fell 1.76% to 17266.
4. On Budget Day 1 February 2023, the Nifty closed at 17616, down 0.26%. A week later it was up 1.45 percent at 17871.
5. On the day of the Interim Budget on 1 February 2024, the Sensex opened at 71998.78 and closed at 71645. It had earlier closed at 71,752.11 on January 31. The Sensex touched a high of 72,152.00 on February 7 after Budget Day.