Indian Union Budget 2021-22: Even in the month of January 2021, the Sensex budget has weakened by 1700 points from its record high, but so far this month it has increased by about 7600 points. On 31 December 2020, the SENSEX closed at the level of 40723, which closed at 48347 on the previous trading day. This means that till now the Sensex has become 18 percent stronger. While talking about the last 11 years, in 2018, the SENSEX gave the highest return of 5.6%. This time market sentiments were strong before the budget, which has benefited investors. Know how the market has performed in the budgeted month in the last 11 years.
The market created history in January
The budget month has been very spectacular for the stock market so far. On January 21, the Sensex crossed the level of 50 thousand for the first time and reached the level of 50184. The Nifty also managed to cross 14750 for the first time. Although some profit booking has come in the market after January 21, the market has still performed well this month. At the same time, experts believe that correction before the budget is better for the market. If some strong trigger is found in the budget, then this oil will continue even further.
7 times in the last 11 years, the budget slump
Talking between 2010 and 2020, the budget has been presented 11 times. Out of these 11, 7 times the index and the Nifty have been falling.
Return of Sensex in Budget Month: The budget was presented on 1 February in the year 2020. During that time, the Sensex had fallen by 1.28 percent in 1 month. In 2019, between 5 June and 5 July, the SENSEX had weakened by 0.04 percent. It increased 5.6 percent between January 1 and February 1 in 2018. In 2017, the budget was up 4 percent. In 2016, the Sensex budget slipped 6.1 percent, then weakened 1.15 percent in 2015. It broke 0.54 percent between June 10 and July 10 in 2014. In 2010, 2011 and 2013 also, it declined by 2 per cent, 3 per cent and 3.5 per cent, while in 2012 it was faster.
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Nifty returns in the budget month: The Nifty declined by 1.09 percent between 1 January and 1 February 2020 in the year 2020. It broke 0.46 percent between 5 June 2019 and 5 July 2019. Between 1 January 2018 and 1 February 2018, it grew by 5 per cent. Between 1 January 2017 and 1 February 2017, it has been growing by 4.58 percent. It fell by 5.30 percent in the year 2016 and fell by 0.80 percent in 2015. Between 10 June 2014 and 10 July 2014, there has been a weakness of 0.90 percent. In 2013, it broke 4.5 per cent and in 2012 it fell by 2.73 per cent. In 2011, the index has fallen 6.5 per cent in the budget month and in 2010 it has fallen by 3 per cent.
Why did the budget boom accelerate in 2021
This year, market sentiments were strengthened with the introduction of Corona vaccine before the budget and the commencement of vaccination. At the same time, foreign investors also made a record investment in the market, which removed the worry of liquidity. At the same time, corporate earnings are looking better in the month of January. Investors are investing in the market due to improvement in profitability and margins of companies. In December, the GST collection went to a record level of 1.15 lakh crore. At the same time, the interest rate remains constant. The RBI has forecast inflation in the coming months. Rural sentiments are strong. Growth has improved in the manufacturing activity of the country.
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