Sharekhan Blog

How has Sensex Performed on Budget Day in the Last 10 Years?

  • Feb 11, 2024

One particularly fascinating aspect of this financial rollercoaster is the market's reaction to Budget Day. Depending on the waves of budgetary announcements, market participants have experienced an overload of emotions, from charm to fear.

As we investigate the historical performance of the Sensex on this crucial day, emotions run high, mirroring the sentiments of investors and stakeholders alike.

The Last Decade: A Journey Through Peaks and Valleys

In the economic year 2012-2013, Budget Day witnessed the Sensex dropping by nearly 2%, leaving investors uneasy. However, the following year painted a different picture, with a strong 2.1% surge, setting a positive tone for the market. This pattern of unpredictability continued over the subsequent years, with the Sensex showcasing its capricious nature.

2013-2015: The Bullish Leap

The early years of the decade witnessed a bullish trend, with the Sensex often responding positively to budgetary unveilings. Investors transported as the government outlined growth-oriented policies, leading to encouraging market sentiments.

The Financial Drama of 2016

The year 2016 was marked by heightened anticipation and anxiety as the government introduced the Union Budget shortly after demonetisation. The Sensex, true to its explosive character, initially descended by over 1%, only to make a tremendous recovery later in the day, closing with a profit of 0.9%. This dramatic swing left investors on the edge of their seats, emphasising the emotional rollercoaster that is the stock market.

Demonetisation Aftermath:

In 2017, the Sensex surged by a substantial 1.8%, reflecting the market's approval of the government's post-demonetisation economic policies. The following year, however, brought a reversal of fortune as the index witnessed a 1.7% decline, showcasing the inherent uncertainty surrounding budgetary announcements.

2018: Turbulent Times

The mid-decade period, however, was marked by turbulence. Global uncertainties, coupled with domestic challenges, led to more cautious market reactions on Budget Day. Investors grappled with mixed emotions, oscillating between hope and anxiety.

The Bull Run of 2019

The year 2019 saw a significant upswing in the Sensex, with a remarkable 2.3% surge on Budget Day. This bullish trend continued into the following year, when the market responded positively, registering a 2.4% gain. The successive consecutive years of positive performance reflected a sense of positiveness and confidence in the government's economic strategies.

2020: Navigating the Pandemic Storm

The year 2020 rewrote the rules. As the pandemic struck, Budget Day became a defining moment in an already rough market. The distinctive challenges brought on by the COVID-19 pandemic in 2020 had a thorough impact on global financial markets, including the Sensex.

Budget Day that year witnessed a 2.4% decline, highlighting the prevailing uncertainty and apprehension. The following year, however, brought about a remarkable recovery, with a 2.0% profit, signalling resilience in the face of hardship.

2021-2023: The Resilient Bounce Back

In the aftermath of the pandemic, the subsequent years showcased the market's strength. Budget Days saw the Sensex bouncing back, fueled by government incentives and recovery-oriented policies. Investors found relief in the assurance of a post-pandemic economic revival.

Current Market Beliefs

As we stand on the verge of a new economic year, the Sensex continues to be a reflection of market sentiments. Investors, guided by emotions of hope and caution, eagerly await the Budget Day announcement, knowing that it could set the tone for the upcoming market trends.

Emotional Dynamics

Investors experienced an endless amount of emotions during these Budget Day spectacles. The dynamic protests brought satisfaction and a sense of prosperity, while the turbulent times and unprecedented plunge invoked fear and caution. The subsequent recovery encouraged hope and strength, portraying the emotional rollercoaster inherent in the financial markets.

Expert Insights

Seasoned industry experts note that the Sensex's performance on Budget Day is a complex interplay of economic fundamentals, market expectations, and global dynamics. The emotional responses of market participants, while rooted in rationality, often reflect the collective sentiment of surviving at the time.

Conclusion

The last decade has been a rough journey for the Sensex on Budget Day, memorialised by twists and turns that have produced a range of emotions from market participants. From the anxiety-ridden aftermath of demonetisation to the optimistic trash runs, each year has left an unforgettable mark on the collective intellect of investors.

As we prepare ourselves for the next chapter in this financial saga, one thing in the market stays certain: the Sensex remains a testament to the enduring spirit of investors, guiding the uncertainties and opportunities that Budget Day discloses.


Team Sharekhan
by Team Sharekhan

We care that your succeed

Leaving no stone unturned in creating a one-stop shop for the latest from the world of Trading and Investments in our effort to Make the Markets work for YOU!

Recent posts

F and O Stock List with Lot Size

18 Apr 2024

The world of futures and options (F&O) trading can seem complex for beginners with all the terminology like lots, contracts, strikes, etc.

Read More

What is Fiscal Deficit?

18 Apr 2024

Fiscal Deficit means that the total expenditure of a country is more than the total revenue of the nation. It is an indication of how the country will perform in the upcoming financial year. It represents how much the government will have to borro

Read More

Rules of Accounting Explained

18 Apr 2024

Every transaction in accounting has two entries: debit and credit. This dual-entry accounting system is critical when one attempts to determine which accounts are to be credited and which are to be debited.

Read More

What is Revenue Deficit?

18 Apr 2024

When spending is more than what's earned, it creates a revenue deficit. The revenue deficit meaning is that the government is spending more than it is earning, using savings from other parts of the economy to cover its expenses.

Read More

What is UAN Number & How to Activate UAN Number?

18 Apr 2024

The Universal Account Number (UAN) is a twelve-digit unique identification number assigned to every employee contributing to the EPF scheme. It is a single alternative to multiple Member Identification Numbers (Member IDs) allotted to an individua

Read More