The sentiment of the stock market has deteriorated before the budget 2022. If we look at the data of the last few years, most of the time in the budget month, there is a trend of weakness in the market.
Stock Market Pre Budget: The sentiment of the stock market has deteriorated before the budget 2022. Since the last 10 days, there is a lot of selling in the market. Since January 17, there has been a huge decline in the market and during this the Sensex weakened from the level of 61310 and came down to the level of 56675 in intraday today i.e. on January 27. At present, in this correction, the market cap of the companies listed on BSE has also come down strongly. By the way, if we look at the data of the last few years, most of the time in the budget month, there is a trend of weakness in the market. From the year 2010 till the last budget, the performance of the stock market has been weak in the budget month 9 out of 12 times.
20 lakh crore clean in 10 days
If we look at it from January 17, since then till now there has been a downward trend in the market. The market cap of companies listed on BSE as on January 17 was Rs 2,80,02,437.71 crore. Whereas today it came down to Rs 2,59,43,133.60 crore in intraday. That is, the wealth of investors has come down by about Rs 20.6 lakh crore.
Reasons for the fall in the market
Global factors dominate the fall in the market before the budget. The Federal Reserve in the US is strict about monetary policy. Agencies are predicting that this year the interest rates may increase 3 or 4 times. This puts investors in a wait and watch position. Globally, the cases of COVID 19 have started accelerating once again in many countries, due to which restrictions have increased. Foreign investors are continuously withdrawing money from Indian markets. US 10-year bond yields are at several-month highs, leading to a sell-off.
When the market weakened in the budget month
Talking about last year, on February 1, 2021, a month before the budget, the Sensex had fallen by 1582 points or 3.3 percent. In the year 2020, on February 1, the Sensex had lost 1.28 per cent in the first one month of the budget. In the year 2019, before the budget, between June 5 and July 5, the Sensex had weakened by 0.04 percent. In 2016, the Sensex had weakened by about 6.1 percent in the first one month of the budget. During the Budget Month in 2015, the Sensex had fallen by 1.15 per cent. In 2014, the Sensex had lost 0.54 per cent between June 10 and July 10, before the budget. In 2013, the Sensex had fallen 3.5 per cent during the budget month. In 2011, during the budget month, the Sensex had fallen by 3 per cent. In 2010 too, the Sensex had weakened by 2 per cent in the first one month of the budget.
When the market boomed in the budget month
In 2018, the Sensex had strengthened by about 5.6 percent in the budget month before February 1. In 2017 there was a growth of 4 percent in the budget month. In 2012, the market was bullish during the budget month.
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