Rohit Joshi/ZRG
In the last 14 years, the stock market has put up a disappointing show on the day of Budget. Out of the 14 instances, Sensex has tumbled on eight different occasions.
A Zee Research Group (ZRG) analysis of the market performance on the day of Budget announcement in the past 14 years showed that the Bombay Stock Exchange index, Sensex, had been in the positive territory on just six occasions.
ZRG has incorporated those budgets which have been announced at 11 am. Till the year 2000, the Union budget was announced at 5 pm, but Yashwant Sinha began a new trend by announcing it at 11 am in 2001.
During the period under review, maximum six budgets have been presented by Chidambaram followed by Pranab Mukherjee (4), Yashwant Sinha (2), Jaswant Singh (1), and Arun Jaitley (1).
Out of the six instances when Chidambaram has presented the budget, key markets indices have tumbled on four different occasions. The Sensex had registered a maximum fall of 4 per cent under his regime.
It’s nothing like that market is harsh towards Chidambaram. The biggest loss was witnessed in 2009 with the Sensex closing at 5.8 per cent lower on the day former finance minister Pranab Mukherjee presented his first budget under the UPA-II government.
Similarly, the years when the market saw a decline on the Budget day were, 2013 (down 1.5 per cent), 2012 (1.2 per cent), 2008 (1.4 per cent), 2007 (4 per cent), 2004 (2.3 per cent), 2002 (3.9 per cent).
Likewise, on July 10, 2014, when Arun Jaitley has presented his first budget, Sensex closed the day down 0.28 per cent at 25,372.75.