Friday, 19 January 2018

What impact will Budget 2018 have on the stock markets?






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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