Besides, a global sell-off, depreciating rupee and frequent foreign fund outflows further dampened investor sentiment after the US Federal Reserve signaled policy tightening since March.
The Sensex had fallen 1,836.95 points or 3.11 per cent last week, while nifty 515.20 points or 2.92 per cent.
However, this does not mean that the market has crashed. According to Dhirendra KumarFounder and CEO of Value Research, Sensex and Nifty are both at one-month lows, but they are above levels that were first reached in late August, meaning the current level was an all-time high just five months ago Will happen.
Now all eyes are on the steps of the Finance Minister Nirmala Sitharaman She will announce while presenting her fourth Union Budget in Parliament tomorrow.
Just a day before this, markets lauded the growth forecast by the Economic Survey at 8-8.5 per cent for the financial year 2022-23. Reversing last week’s losing streak, the 30-share BSE Sensex opened strongly and maintained its momentum throughout the session. It finally closed at 58,014.17, up 813.94 points or 1.42 per cent. Similarly, the broader NSE Nifty closed 237.90 points or 1.39 per cent higher at 17,339.85.
In March 2020, when the government imposed a nationwide lockdown to contain the spread of COVID-19, the market jumped nearly 120 percent.
Since then it has touched many record highs. The Sensex touched its highest intra-day point of 62,245 on October 19 last year. Since then the market has been volatile and has seen some corrections.
In fact, equity markets have risen by over 125 per cent since the Narendra Modi-led NDA government came to power in May 2014.
The day Modi took office in May 2014, the BSE Sensex was at 24,121.74 and is now above 57,000. Whereas, NSE Nifty ended the session at 7,203 on the same day and has now crossed the 18,000 mark.
All eyes will now be on how the benchmark indices behave Budget And what impact will the announced measures have on investor sentiment.
Interestingly, in the last 10 years, markets have closed in positive territory on only four occasions on the day of the presentation of the Budget, thrice so far under the BJP regime.
Here’s a look at how the markets have performed on the day of Budget presentation since the Modi government came to power in 2014:
*Budget 2014-15 (July 10, 2014)
The Union Budget 2014 was presented by the then Finance Minister Arun Jaitley. This was the first budget of the newly elected Modi government.
The BSE Sensex opened the day at 25,513.74 and ended the session down 140.99 points at 25,372.75. It hit an intra-day high of 25,920.46 and a low of 25,117.00.
At the same time, NSE Nifty started the session at 7,589.50 and closed 21.75 points down at 7,567.75.
* Budget 2015-16 (February 28, 2015)
This was the first full year budget of the Modi government. Fiscal deficit was seen at 3.9 per cent of GDP in 2015-16, while GDP growth was seen in the range of 8 per cent to 8.5 per cent.
In a volatile session, the Sensex opened at 29,411.33 and touched an intra-day high of 29,560.32, falling 49.83 points to close at 29,361.50. Whereas, NSE Nifty started the session at 8,913.05 and closed at 8,901.85.
* Budget 2016-17 (February 29, 2016)
The 30-share index started the day at 23,238.50 and closed 236.5 points lower at 23,002. At the same time, NSE Nifty closed at 6,987.05, down 63.4.
* Budget 2017-18 (February 1, 2017)
Following the changes introduced by the then Finance Minister Arun Jaitley, the Budget for 2017-18 was presented on the first day of February instead of the last working day. In addition, the Railway Budget – which was presented separately for 92 years – was merged with the Union Budget.
The pre-Budget markets remained in positive territory for most of the days. The BSE Sensex opened at 27,669.08 and closed at 28,141.64, up 472.56 points. While the NSE Nifty closed up 146.05 at 8,716.40.
* Budget 2018-19 (February 1, 2018)
In a volatile session, the Sensex started the day’s trading at 36,048.99 and closed 142.33 points lower at 35,906.66. Whereas, the broader NSE Nifty opened at 11,044.55 and closed 27.65 points lower at 11,016.90.
* Interim Budget 2019 (February 1, 2019)
Arun Jaitley is undergoing treatment. Piyush Goyal Appointed stand-in finance minister and presented the interim budget Lok Sabha Before the 2019 general election.
Before the budget, Sensex was trading with gains for most of the days.
On February 1, the benchmark BSE Sensex started the session at 36,311.74 and ended 157.69 high at 36,469.43, touching an intra-day high of 36,778.14. On the other hand, the broader NSE Nifty opened at 10,851.35 and closed at 10,893.65, up 42.3.
* Budget 2019-2020 (July 5, 2019)
India’s first full-time woman finance minister Nirmala Sitharaman Presented his first Union Budget in the Lok Sabha on 5 July. This was also the first full budget of the Modi 2.0 government.
By the day of Budget, investors were cautious.
On the day of Budget presentation, the Sensex opened at 39,990.40 and touched an intra-day high of 40,032.41 before falling 477.01 points to end at 39,513.39 in a volatile session. Nifty also closed 153.6 points lower at 11,811.15.
*Budget 2020-21 (February 1, 2020)
Before the presentation of the budget on February 1, 2020, there was a lot of volatility in the stock markets.
The BSE Sensex fell 3.44 per cent in 5 sessions ahead of Budget Day. On the day of Budget also, it had broken down 2.43 per cent or 988 points to close at 39,735.53.
However, the deficit was reversed within a week.
*Budget 2021-22 (February 1, 2021)
Markets lauded the announcements by Finance Minister Nirmala Sitharaman in the Budget for 2021, with the benchmark Sensex trading 2,315 points or 5 per cent higher at 48,601.
The broader NSE Nifty closed 647 points or 4.74 per cent higher at 14,281.
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