How will
the equity markets behave to the Union Budget 2018? If the last few years are
taken as a Criterion, it is likely that the Sensex would enjoy in the month
after the budget. Since 2010, the Sensex has gone up six times out of nine in
the month after the budget. But then, the gauge index has also fallen eight out
of nine times during the month prior to the budget. During this time, there was
one provisional budget as well.
“Historically,
in a scheme of negative expectations from the Budget in the run-up to the
event, market participants withheld their buying accord and once the event is
out of the way, they take exposure, which causes a bump-up in the market post
the event,” says Deepak Jasani, head (retail research) at HDFC Securities Ltd.
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