How Budget Moves The Market
The Nifty 50 Index clocked its best single-day return before the Union Budget in a decade this time. The Indian benchmark index ended 1.68 percent higher, its best return in over a month.
On the budget day, the benchmark index is usually volatile as investors react to the Finance Minister’s announcements and take time to go through the fine print. The budget of 2009, presented by Pranab Mukherjee, spooked investors the most in the last decade.
The day after the budget, the markets usually recover. They, however, fell last year as the finance minister brought back long-term capital gains tax on equities.