Investor sentiment remained cautious as the government’s planned capital expenditure of ₹11.2 lakh crore was perceived as modest and below market expectations. However, FMCG and auto stocks outperformed after Finance Minister Nirmala Sitharaman announced zero income tax on annual income up to ₹12 lakh (₹12.75 lakh including standard deduction) under the new tax regime, boosting consumption-linked sectors.
Finance Minister Nirmala Sitharaman presented the first full-fledged Budget of the Modi 3.0 government on July 23, triggering sharp volatility. The BSE Sensex ended 73 points, or 0.09%, lower at 80,429.04 after plunging nearly 1,200 points intraday, weighed down by proposals to raise capital gains tax and levy higher taxes on derivatives trading.
Earlier, on February 1, 2024, during the interim Budget ahead of the Lok Sabha elections, markets closed marginally lower amid choppy trade as investors resorted to profit-taking. The Sensex settled down 106.81 points, or 0.15%, at 71,645.
Markets reacted with mixed sentiment to the Union Budget 2023, with optimism dampened by the Hindenburg-Adani episode and caution ahead of the US Federal Reserve’s policy decision. On February 1, 2023, the BSE Sensex closed 158 points, or 0.27%, higher at 59,708, paring most of its early gains. During the session, the index had surged as much as 1,223 points, or 2%, to 60,773 after the Finance Minister announced measures to boost consumption and capital expenditure.
Dalal Street gave a strong thumbs-up to Union Budget 2022. The Sensex ended the day 848 points higher at 58,862, after rising nearly 1,000 points intraday to touch 59,032. Sentiment was buoyed by a series of growth-focused announcements made amid lingering pandemic-related disruptions and rising inflation.
Considered one of the most crucial Budgets in recent history due to the Covid-19 pandemic, Budget 2021 triggered the strongest Budget Day rally in over two decades. Markets surged nearly 5% as the government focused on disinvestment and increased FDI limits in the insurance sector, while leaving direct taxes and capital gains untouched.
The Sensex soared 2,300 points, or 5%, to close at 48,600, while the Nifty jumped 647 points, or 4.74%, to settle at 14,281.
Markets witnessed one of their steepest Budget Day falls in over a decade on February 1, 2020, after the Finance Minister announced no major relief measures for equities in her maiden Budget. The Sensex plunged 988 points, or 2.43%, to 39,735, while the Nifty 50 dropped 300 points, or 2.51%, to close at 11,662.