Budget Special 2025: Finance Minister Nirmala Sitharaman is going to present the eighth consecutive Union Budget, making various industries and taxpayers high expectations. The Union Budget not only underlines the priorities of the government, but also has a profound impact on the notion of investors.
The Union Budget of FY 2025 will be presented on 1 February 2025 (Saturday). On this historic day, the stock markets will be open according to normal time.
The National Stock Exchange (NSE) said in the exchange filing, “Live trading session at the exchange on February 1, 2025 (Saturday) will be operated as per normal market time due to the introduction of Union Budget.”
Every year the stock market keeps a close watch on budget announcements as these announcements determine the direction of the market in the coming months. Expectations of improvement, tax relief and incentive package this time are being expected. According to historical data, the stock market usually sees huge ups and downs on the budget day, as investors’ reactions on its announcements can range from positive to negative.
Before the announcements of Budget 2025, let’s take a look at the move on the stock market on the day of the budget in the last 10 years. The market’s reaction during every budget has significantly affected investors’ perception and market direction.
Let us know how the market has performed on the budget day in the last decade?
Budget 2024: Light fall in the market
The first full budget of the third term of the Modi government (Modi 3.0) was presented on 23 July 2024. Investors hoped that there would be many major announcements in the budget, but the market response was a bit disappointing. During this period, the Sensex fell 0.09% to 80,429 and the Nifty fell 0.12% to close at 24,479. However, there was not much decline in the market as some concrete policies were announced keeping in mind the long-term growth in the budget, which reduced the nervousness of investors and expected positive effects in the future.
Budget 2023: Sensex growth after budget, Nifty dropped
The 2023 Union Budget presented by Finance Minister Nirmala Sitharaman made several announcements to strengthen public finance and strengthen the financial sector. These announcements saw a mixed effect on the stock market.
The Sensex gained more than 1100 points during intraday trading, but finally it closed at 59,708.08 with a gain of just 158.18 points. At the same time, the Nifty 50 index declined and closed down 45.85 points at 17,616.30.
Budget 2022: Stock market boom
Following the announcements of the budget 2022, the stock market saw a strong rise, where the Sensex climbed 849.40 points to close at 58,862.57 and closed at 17,576.85 with an increase by 237 points in Nifty 50. Sectors such as Pharma, FMCG, Metals, IT and Real Estate recorded a strong growth, while textile shares jumped due to custom duty cuts and promoting exports. However, the auto and oil-gas sector saw a decline, and due to the increasing financial deficit, the government bond yields increased by 15–20 basis points, causing pressure on the treasury income of PSU banks.
Budget 2021: 20 years of best performance in the stock market
In the year 2021, the stock market recorded the best performance of 20 years, where the major index increased by 5%. Investors took the Central Government Budget 2021 positively.
- Sensex: 2,300 points (5%) gained at 48,600
- Nifty: 647 points (4.74%) closed at 14,281
According to experts, this budget created a positive perception in the market by insisting on infrastructure, health and economic reforms, which increased enthusiasm among investors and witnessed widespread purchases.
Budget 2020: Market falls heavy, investors lost ₹ 3.6 lakh crore
The stock market had seen a huge decline in the budget 2020, where the BSE Sensex fell 988 points to 39,735 and the Nifty fell 300 points to close at 11,662. The budget announced new tax slabs and low tax rates, but the investors were disappointed due to relief in long -term capital gains (LTCG) tax or lack of great incentives for industries. Due to this decline, investors suffered a loss of about ₹ 3.6 lakh crore in a single day, which is considered to be the worst budget-day of the last 12 years. Finance Minister Nirmala Sitharaman’s budget speech did not show any major improvement as per the market expectations, causing a negative atmosphere in the market.
Budget 2019: Mixed Reaction of Stock Market
On 1 February 2019, Finance Minister Piyush Goyal introduced the Interim Budget, in which there was no change in the existing income tax slabs. After this budget, the stock market saw an increase, where the BSE Sensex rose 212 points to 36,469.43 and the Nifty 50 index rose 62.7 points to close at 10,893.65. Subsequently, on 5 July 2019, Finance Minister Nirmala Sitharaman presented the Union Budget, in which the big announcements of the interim budget were continued. However, this budget led to a decline in the market and the BSE Sensex fell by 394.67 points to close at 39,513.39, while the Nifty also fell 135.60 points to close at 11,811.20, while the Nifty also fell at 39,513.39.
Budget 2018: Decline in Sensex-Nifty
Finance Minister Arun Jaitley presented his last budget in 2018, in which the return of long -term capital gains tax and additional tax on dividend weakened the market notion. The BSE Sensex fell 58.36 points to close at 35,906.66, while the NSE Nifty 50 index fell 10.80 points to close at 11,016.90. This decline in the Sensex was the eighth decline of the budget day in the last 10 years.
Budget 2017: Market strength
The budget was presented on 1 February 2017 and for the first time the Railway Budget was included in the Union Budget. Finance Minister Arun Jaitley announced relief to middle class taxpayers and set a target of fiscal deficit 3%. Large decisions strengthened the market like increased tax collection due to demonetisation and reduced long-term capital gains tax period from 3 years to 2 years. After the budget was introduced, the BSE Sensex gained 485.68 points to close at 28,141.64 and gained 1.76%, which was the biggest edge of the budget after 2010. At the same time, the NSE Nifty 50 index rose by 155.10 points to close at 8,716.40.
Budget 2016: Market falls
On 29 February 2016, big announcements were made in the budget presented by Finance Minister Arun Jaitley in the budget presented in five years. However, it did not show a positive impact on the market. The BSE Sensex closed down 152.30 points to close at 23,002.00, while the Nifty 50s fell 42.70 points to close at 6,987.05.
Budget 2015: Stock market gives positive response
On 28 February 2015, Finance Minister Arun Jaitley presented the Union Budget focused on increasing investment. The stock market gave positive response to this budget, leading to the BSE Sensex gained 141.38 points at 29,361.50 and NSE Nifty gained 57 points to close at 8,901.80. However, the Nifty declined by 4.6% in the following month.