Nifty 50 Index on Budget Day.

Over the past decade, the Nifty 50 index has exhibited varied responses on Union Budget days, reflecting investor sentiment towards fiscal policies and economic strategies.

The above image shows the performance of Nifty 50 Index on budget day in the last 10 years.

The Nifty 50’s reactions on Budget days have been mixed, with gains in certain years and declines in others. This variability underscores the market’s sensitivity to fiscal announcements and economic policies introduced during the Union Budget.

Though the volatility is high on budget day, due to various announcements, the average returns of Nifty 50 index is around 0.37% only.

The index is down 10% in the last few months, due to heavy selling by Foreign Institutional Investors (FIIs) and currently Nifty 50 is 23,500.

Going towards Budget 2025, the expectations is low among market participants. Hence, any positive announcements from budget can take the markets higher from these levels.