The Union Budget is scheduled to be presented on February 1, 2022 at 11 am in Parliament. The Budget will be presented on the first day of the Parliamentary session, which is also known as the Budget Session. The Budget will be presented by Union Minister of Finance Nirmala Sitharaman, a BJP member of the Rajya Sabha and an economist.
The announcement of the Union Budget every year is one of the most important events in the country, including for the markets.
Since 2010, the Nifty 50 index has seen a decline before and on Budget day before rallying in the week and month after, reported Anand Rathi Share and Stock Brokers Limited. The maximum Budget day return was witnessed at 4.7 percent and the maximum fall at 2.5 percent.
The median return on Budget day has seen a fall of 0.2 percent, with a slump of 1.9 percent in the month previous to the Budget day and 0.7 percent in the week before. The maximum slump in the previous month has been 7.1 percent and the maximum return 5.6 percent.
The reaction of mid-caps has been far more volatile to the budget compared to the large-caps. “On balance, the Nifty 500 undershoots the Nifty 50 before the budget, but outdoes afterward,” stated the report.
The report also said that “supporting growth would be the key focus of the Budget.
Some of the key initiatives expected from the upcoming budget are special measures to stabilise growth through supportive fiscal policies, improving farm prices with aggressive MSP hikes, and food subsidies. However, no major reform is expected and schemes like Make in India, Atmanirbhar Bharat and PLI schemes are expected to be continued.
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(Edited by : Thomas Abraham)