In the final 5 years, the BSE Sensex has given optimistic returns to traders 4 instances on the Budget day and the benchmark rallied essentially the most by 5 per cent on the closing commerce in 2021.
Barring February 1, 2020, when the 30-share BSE benchmark ended 987.96 factors or 2.42% decrease, the bellwether index ended within the optimistic territory on the Budget day within the 12 months 2023, 2022, 2021 and 2019.
Finance Minister Nirmala Sitharaman will current the interim Budget on Thursday.
“We anticipate that Budget 2024 might not bring significant shifts in the stock market or investor portfolios, but it’s crucial to closely analyse any key announcements for their market impact. This year, market dynamics are expected to be shaped by political and economic factors, with a clear focus on capital expenditure rather than short-term populist measures,” Suman Bannerjee, CIO of Hedonova, a Paris-based hedge fund, mentioned.
Interim Budget 2024 Live Updates
Last 12 months on the Budget day, the BSE benchmark ended at 59,708.08 factors, up by 158.18 factors, or 0.26%.
In 2022, the Sensex jumped 848.4 factors or 1.46 per cent whereas in 2021, it rallied 2,314.84 factors or 5percentt after the Budget bulletins.
“With the recent triumph in state elections, the upcoming interim Budget for 2024 appears to steer clear of grand populist gestures. Instead, the focus would be on maintaining the status-quo with a keen eye on policy continuity,” in accordance with a report by brokerage agency Sharekhan by BNP Paribas.
“We expect a vibrant narrative around crucial elements such as capital expenditure, the ‘Make in India’ initiative, and a green energy push,” the report mentioned.
In 2020, the BSE bechmark fell 987.96 factors or 2.42 per cent and within the prior 12 months, it clocked a acquire of 212.74 factors or 0.58%.
“2024 appears promising with the markets hitting a new high and economic growth is healthy especially in the context of a slowdown globally,” the report mentioned.
The BSE benchmark reached its all-time excessive of 73,427.59 factors on January 16, 2024.
“As for the markets, we foresee no immediate reaction with the Budget announcement. The announcement comes soon after the Fed announcement on the 31st, hence the market reaction for the next few weeks will be from a combination of the Budget and the Fed announcement,” Ashwini Shami, smallcase Manager, EVP & Portfolio Manager at OmniScience Capital, a worldwide funding administration agency, mentioned.
On Wednesday, a day earlier than the Budget announcement, the BSE Sensex jumped 612.21 factors or 0.86 per cent to settle at 71,752.11 factors.
“Although there would be some buildup of expectations ahead of the vote on account, we think that major policy reforms and announcements may get postponed to the regular Budget due in June/July 2024. Capex and fiscal consolidation path followed in the vote on account would be monitored closely given their impact on growth and interest rates.
“The capital markets could get a bit of excited forward of and submit the vote on account however could favor to attend for the overall election end result and the common Budget earlier than getting very bullish,” Deepak Jasani, Head of Retail Research, HDFC Securities, mentioned on what inventory markets ought to anticipate from this 12 months’s Budget.