The monsoon session of Parliament commenced on July 22 with Finance Minister Nirmala Sitharaman presenting the Budget. The focus is on the budget’s implications for the common man, marking the Modi government's first budget of its current term. The announcement is also anticipated to significantly impact the stock market. Since 2014, the Modi government has unveiled the budget 12 times.
The Modi government has presented two interim budgets: the first in 2019 and the second on February 1, 2024. The stock market remained stable on seven of these occasions. The first full budget, delivered on July 10, 2014, saw the Nifty index drop by 0.23% to 7,567.75, but it recovered with a 0.96% increase to 7,640.45 over the following week, according to Ajay Kedia of Kedia Advisory.
According to the report, on February 25, 2015, the day of the second Modi government budget, the stock market showed a bullish trend with the Nifty rising slightly by 0.06% to 8,767.25. Over the next week, it gained 1.77% to reach 8,922.65. Conversely, on February 29, 2016, the day of the third budget, the Nifty fell 0.61% to 6,987. However, the stock market rebounded over the following week, with the Nifty increasing by 7.13% to 7,485.
On February 1, 2017, the day of the budget presentation, the Nifty rose by 1.81% to close at 8,716. Over the next week, it gained an additional 0.60%, reaching 8,769. In contrast, the 2018 budget saw the Nifty close at 11,016, a decline of 0.10% on the day, and it fell by 3.99% over the following week.
On February 1, 2019, the day of the Modi government’s first interim budget, the Nifty closed 0.58% higher at 10,893 and rose 0.46% to 10,943 a week later. Following the BJP's victory in the 2019 elections, the first full budget of the second term was presented on July 5, 2019. On that day, the Nifty fell by 1.14% to 11,811, and it continued to decline over the next week, dropping 2.19% to 11,552.