The stock market sometimes liked the budget and sometimes was disappointed, know the attitude of the stock market for 10 years
Budget market reaction: Every year from the poor, middle class to the general budget There is a mixed reaction from the industrialists. From the farmer, the employed to the businessman, there is some hope of relief from the government, but everyone’s eyes are also fixed on the stock market, which is considered to be the pulse of the impact of the budget on the business environment. In the last few years, after the budget, there has been a fluctuating reaction in the stock market. Finance Minister Nirmala Sitharaman She will present her fourth budget on Tuesday. This is considered important in view of the assembly elections including five states. Sensex and Nifty have seen gains on Tuesday before the budget.
2011: market boom
Amidst all the public welfare and social security schemes, in the year 2011, the then Finance Minister Pranab Mukherjee presented the budget. In this, along with controlling the financial deficit, a blueprint of economic reforms was drawn, due to which there was a boom in the market. The Sensex went up by more than 700 points and Nifty also made strong gains.
2012: Disappointing stance
In the last years of the UPA-II tenure, this budget was presented amidst allegations of policy paralysis on corruption and other issues, on which the stock market’s trend was disappointing. The Sensex fell by about 210 points.
2014 – did not like even the interim budget
The then Finance Minister P Chidambaram presented the interim budget in view of the elections in the last year of UPA-2. But the Sensex went down to 300 points and reached below 19 thousand. Issues related to tax on foreign institutional investors and new surcharge on domestic companies kept the market disappointed. The NDA government later presented the full budget and allayed investors’ apprehensions on retrospective tax.
2015- Big jump in Sensex
Finance Minister Arun Jaitley announced to reduce the corporate tax from 30 to 25 percent in this budget, due to which there was a boom in the market. But after the announcement of postponement of GAAR for two years, the market lost a gain of about 500 points.
2016- The market was disappointed with the budget
The stock market looked disappointed with the announcement of a hike in Dividend Distribution Tax (DDT). The positive atmosphere in the market also seemed to disappear with the increase in securities transaction tax. Sensex came back to the threshold of 23 thousand.
2017 – The market showed huge enthusiasm
The then Finance Minister Arun Jaitley drew a blueprint for increasing public and private investment with the help of public sector banks in the budget. The Sensex showed a jump of about 1200 points and crossed 28 thousand. Nifty also made many records. Along with this, due to the absence of increase in capital gains tax and short term tax rate, the market also showed the way.
2018- First budget after GST
After the implementation of the new indirect tax system GST in July 2017 in the NDA government, the budget for the financial year 2018 came, in which there was disappointment. Government announced Long Term Capital Gains Tax on Equity to match investment and Sensex came down. There was also concern about the fiscal deficit.
2019- Market frustrated by tax on super rich
In 2019, Finance Minister Nirmala Sitharaman announced the imposition of tax on the superrich and increasing the public shareholding in listed companies to 35 per cent. Due to this, both Sensex and Nifty declined, although the market saw a sharp recovery later.
2020- The market took a dive
In the second budget of Finance Minister Nirmala Sitharaman, the market did not make an early lead, but later BSE and NSE took a dive of about 2.5 percent. The Sensex saw a fall of about a thousand points. The impact of uncertainty regarding non-removal of LTCG and dividend tax was seen on the market.
2021- Big boom in the market
According to the reaction of the stock market, a record jump was seen in the stock market. The Sensex went up to about 2 thousand and crossed the all-time level of 48 thousand. Nifty (National Stock Exchange) also saw an increase of 3 percent.