How Stock Markets Have Reacted To Budget Announcements

As Finance Minister Nirmala Sitharaman announced her second Union Budget, the stock markets suffered their worst single-day fall recorded in at least 17 months. During the special trading session on February 1, 2020 - the first such instance since 2015 when the markets remained open on a Saturday as the government presented its Union Budget, the Sensex nosedived by 1,092.25 points (2.68 per cent) before settling with a loss of 987.96 points (2.43 per cent) at 39,735.53 for the day, and the Nifty plunged 328.8 points to an intraday low of 11,633.3 before settling at 11,661.85 - both the lowest closing levels in three months. Here's a look how the markets have reacted to some of the Budget-day announcements in the past few years:

  • <strong>February 1, 2020</strong> <Br /><Br /> Domestic stock markets suffered their worst single-day fall in at least 17 months reacting to Union Budget announcements. The S&P BSE Sensex index nosedived by 1,092.25 points (2.68 per cent) before settling with a loss of 987.96 points (2.43 per cent) at 39,735.53 for the day. The broader NSE Nifty benchmark plunged 328.8 points to an intraday low of 11,633.3 before settling at 11,661.85. Both indices finished the session at the lowest closing levels recorded in three months.
    February 1, 2020

    Domestic stock markets suffered their worst single-day fall in at least 17 months reacting to Union Budget announcements. The S&P BSE Sensex index nosedived by 1,092.25 points (2.68 per cent) before settling with a loss of 987.96 points (2.43 per cent) at 39,735.53 for the day. The broader NSE Nifty benchmark plunged 328.8 points to an intraday low of 11,633.3 before settling at 11,661.85. Both indices finished the session at the lowest closing levels recorded in three months.
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  • </strong>July 5, 2019</strong> <br /><br /> On July 5, 2019, Finance Minister Nirmala Sitharaman presented the first budget of Prime Minister Narendra Modi's government after its return to power in general elections held in May. The Sensex fell as much as 1.17 per cent during the session before ending 0.99 per cent lower for the day. That was followed by a further 2.01 per cent drop in the index on the next day.
    July 5, 2019

    On July 5, 2019, Finance Minister Nirmala Sitharaman presented the first budget of Prime Minister Narendra Modi's government after its return to power in general elections held in May. The Sensex fell as much as 1.17 per cent during the session before ending 0.99 per cent lower for the day. That was followed by a further 2.01 per cent drop in the index on the next day.
  • </strong> February 1, 2019</strong> <br /><br /> On February 1, 2019, then finance minister Piyush Goyal presented the last Budget of Prime Minister Narendra Modi's first term. The Sensex jumped 1.44 per cent during the session before ending 0.59 per cent higher for the day. The index continued to rise for the next three days, a period in which it added 505.8 points (1.39 per cent).
    February 1, 2019

    On February 1, 2019, then finance minister Piyush Goyal presented the last Budget of Prime Minister Narendra Modi's first term. The Sensex jumped 1.44 per cent during the session before ending 0.59 per cent higher for the day. The index continued to rise for the next three days, a period in which it added 505.8 points (1.39 per cent).
  • </strong> February 1, 2018 </strong> <br /><br /> On February 1, 2018, then Finance Minister Arun Jaitley presented his last Union Budget. That led to wild movement in the markets, with the Sensex ending 0.16 per cent lower after dropping 1.29 per cent during the session. The index declined 2.33 per cent the next day, and another 2.81 per cent in the following three sessions.
    February 1, 2018

    On February 1, 2018, then Finance Minister Arun Jaitley presented his last Union Budget. That led to wild movement in the markets, with the Sensex ending 0.16 per cent lower after dropping 1.29 per cent during the session. The index declined 2.33 per cent the next day, and another 2.81 per cent in the following three sessions.
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  • </strong> February 1, 2017 </strong> <br /><br /> On February 1, 2017, then Finance Minister Arun Jaitley presented the Union Budget for 2017-18. The Sensex on that day jumped as much as 1.82 per cent (503.58 points) before ending the session with a gain of 1.76 per cent. The Sensex added to those gains by rising a total 1.06 per cent in the next three sessions.
    February 1, 2017

    On February 1, 2017, then Finance Minister Arun Jaitley presented the Union Budget for 2017-18. The Sensex on that day jumped as much as 1.82 per cent (503.58 points) before ending the session with a gain of 1.76 per cent. The Sensex added to those gains by rising a total 1.06 per cent in the next three sessions.
  • </strong> February 29, 2016 </strong> <br /><br /> The Budget presentation on February 29, 2016 by then finance minister Arun Jaitley dragged the Sensex 2.85 per cent lower during the session, before the index recovered most of those losses by the end of the session. The markets rose for the next six sessions in a row, a period during which the Sensex added 1,791.96 points (7.79 per cent).
    February 29, 2016

    The Budget presentation on February 29, 2016 by then finance minister Arun Jaitley dragged the Sensex 2.85 per cent lower during the session, before the index recovered most of those losses by the end of the session. The markets rose for the next six sessions in a row, a period during which the Sensex added 1,791.96 points (7.79 per cent).
  • </strong> February 28, 2015 </strong> <br /><br /> The first full-year Budget of Prime Minister Narendra Modi's government led to a 0.48 per cent rise in the Sensex after a volatile session. That was followed by two days of gain in which the index climbed up 0.79 per cent.
    February 28, 2015

    The first full-year Budget of Prime Minister Narendra Modi's government led to a 0.48 per cent rise in the Sensex after a volatile session. That was followed by two days of gain in which the index climbed up 0.79 per cent.
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  • </strong> July 10, 2014</strong> <br /><br /> On July 10, 2014, after then finance minister Arun Jaitley presented the first budget of Prime Minister Narendra Modi's administration, the Sensex recovered most of the day's losses to end 0.28 per cent lower after dropping as much as 1.29 per cent during the session. That was followed by two days of losses in which the benchmark index fell another 1.44 per cent, and eight subsequent days of gains in which it soared 5.06 per cent (1,264.87 points).
    July 10, 2014

    On July 10, 2014, after then finance minister Arun Jaitley presented the first budget of Prime Minister Narendra Modi's administration, the Sensex recovered most of the day's losses to end 0.28 per cent lower after dropping as much as 1.29 per cent during the session. That was followed by two days of losses in which the benchmark index fell another 1.44 per cent, and eight subsequent days of gains in which it soared 5.06 per cent (1,264.87 points).
  • </strong> February 17, 2014</strong> <br /><br /> On February 17, 2014, the presentation of interim Budget by then finance minister P Chidambaram - the last Budget before the 2014 general elections - pushed the Sensex 0.62 per cent higher in intraday trade. The index ended the session with a gain of 0.48 per cent, which was followed by two consecutive days of gain in which the Sensex rose 1.26 per cent.
    February 17, 2014

    On February 17, 2014, the presentation of interim Budget by then finance minister P Chidambaram - the last Budget before the 2014 general elections - pushed the Sensex 0.62 per cent higher in intraday trade. The index ended the session with a gain of 0.48 per cent, which was followed by two consecutive days of gain in which the Sensex rose 1.26 per cent.
  • </strong> February 28, 2013</strong> <br /><br /> The presentation of Union Budget 2013-14 by then finance minister P Chidambaram pulled the Sensex 1.87 per cent lower during the session, before the index trimmed some of those losses to settle with a loss of 1.52 per cent for the day.
    February 28, 2013

    The presentation of Union Budget 2013-14 by then finance minister P Chidambaram pulled the Sensex 1.87 per cent lower during the session, before the index trimmed some of those losses to settle with a loss of 1.52 per cent for the day.
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  • </strong> March 16, 2012</strong> <br /><br /> The Sensex benchmark index dropped 1.19 per cent on March 16, 2012 after then finance minister Pranab Mukherjee presented the seventh Union Budget of his career, and another 1.1 per cent the next day.
    March 16, 2012

    The Sensex benchmark index dropped 1.19 per cent on March 16, 2012 after then finance minister Pranab Mukherjee presented the seventh Union Budget of his career, and another 1.1 per cent the next day.
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