Stock Market ahead of Budget: Investors and equity markets eagerly wait for the Union Budget every year. In recent years, it has become a non-event due to several pre-budget policy announcements by the government. Despite this, every segment of the economy awaits the Budget with both expectations and panic.
What does the 10 year figure say?
The figures of the last 10 years, a month before the presentation of the budget, show that during this month, sellers dominate Dalal Street. In 2016, the BSE Sensex had registered a good strength of 7.5 per cent during a month. In 2013, the benchmark had fallen by 6.2 per cent. It had declined by 3.8 per cent in both 2012 and 2020, compared to 0.8 per cent in 2014 and 0.7 per cent in 2015.
On the other hand, the equity market performed well in the one month ahead of the Union Budgets presented in 2017 and 2018, when it registered gains of 5.7 per cent and 6.2 per cent, respectively. Apart from this, there was an increase of 1.5 percent in 2021 and 0.6 percent in 2019.
Budget 2022: 5 interesting things related to the budget, which you will not know about
This time the bears will dominate, or the bulls will take over the command
Experts are betting on an overall positive trend, but expect volatility amid the uncertainty created by the new COVID-19 variant Omicron. Due to this variant, the number of COVID corona patients is increasing across the world including India.
US interest rate
Another concern is the prospect of an interest rate hike by the US Federal Reserve in early March.
Divam Sharma, Co-Founder, Portfolio Management Service Green Portfolio, said, “The market is currently trading on global sentiments with expectations of interest rate hikes. Minutes of the Federal Bank’s December policy meeting indicate interest rate hikes through March 2022. Uncertainty will remain on Omicron for the next 3-4 weeks.” “We expect flat negative sentiment in the market around the budget,” Sharma said.
Atal Pension Yojana: Monthly pension up to Rs 5,000 with tax benefit, know details
what is the intention of the government
However, Ashish Sarangi of Pickwright Technologies and Piper Serica Advisors Pvt. Ltd. The views of K Abhay Agarwal do not match with Divam. Agarwal said, “The government now makes fixed policy and tax rate adjustments throughout the year without waiting for the budget. However, the budget is a big indicator of the government’s intention to pursue fiscal discipline and economic growth.”
On the other hand, Ashish Sarangi says, “This time the market will perform strongly for the rest of the month with the government expected to present a strong budget. Nifty may touch the level of 18,600 in the near future. Apart from IT, the market will pick up this month on the back of good sentiments from the banking and infrastructure segments.”
.