In the Budget for 2023, the BSE Sensex witnessed a substantial increase of over 1,100 points, reaching a peak of 60,773.44, and the NSE Nifty 50 surpassed the 17,970-mark. However, the initial positive momentum was short-lived, and shortly after Finance Minister Nirmala Sitharaman concluded her speech, the indices began a rapid decline, dropping by nearly 1 percent.
The Budget for 2022 saw the Nifty close the day with a 1.4 percent increase, but the overall sentiment turned negative, resulting in the Nifty experiencing its fourth-worst month between 2011 and 2022, with a decline of 4.5 percent.
In contrast, the Budget for 2021, presented during the ongoing COVID-19 pandemic, received a highly positive response from the market, with Nifty closing the day with a strong increase of 4.7 percent.
The budget for 2020 received a negative response, with Nifty closing 2.5 percent lower on the day. Similarly, the interim budget for 2019, presented by Sitharaman as the first full-time female finance minister, failed to impress the market, resulting in a loss of 1.1 percent on budget day and an 8 percent decline in the month following the announcement, marking it as the worst month between 2011 and 2022.
Union Finance Minister Nirmala Sitharaman is slated to present her sixth budget on February 1, 2024. However, this budget will be an interim one rather than a full budget, owing to the impending Lok Sabha elections scheduled for April-May.
The tradition of presenting an interim budget in an election year allows the incumbent government to address essential expenditures until a new government assumes office. This practice ensures the continuity of government functions and financial commitments during the transition period.
