Union Budget 2025 | How markets reacted to previous Budgets

The Union Budget for the upcoming financial year is all set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. According to reports, the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption.

With the Budget mere days away, there are diverse market expectations surrounding it. Let's examine how the markets responded to the previous few Budgets.

Budget 2024

In 2024, Stock market benchmarks Sensex and Nifty tanked after Finance Minister Nirmala Sitharaman announced a hike in STT (Securities Transaction Tax) on F&O (Futures and Options) securities in the Union Budget.

Budget 2023

During the Budget day in 2023, the BSE Sensex experienced a significant increase of over 1,100 points, reaching a peak of 60,773.44. Similarly, the NSE Nifty 50 surpassed the 17,970-mark. However, shortly after Sitharaman concluded her speech, the indices began to decline rapidly, dropping by nearly 1 per cent.

Budget 2022

The finance minister presented the Budget on 1 February. The Nifty closed the Budget day session with a 1.4 per cent increase. However, the sentiment turned negative, resulting in the Nifty witnessing its fourth worst month between 2011 and 2022, with a decline of 4.5 per cent.

Budget 2021

After two consecutive disappointing Budgets, Nirmala Sitharaman presented her third Budget, which received a highly positive response from the market. Due to the ongoing Covid-19 pandemic, this was the first time the Union Budget was presented digitally using a tablet device. Nifty closed the day with a strong increase of 4.7 per cent.

Budget 2020

The second Budget presented by Sitharaman received a negative response from the market, with Nifty closing 2.5 per cent lower on the day.

Budget 2019

Presented by Sitharaman as the first full-time female finance minister, the Budget failed to impress the market. The interim Budget resulted in Nifty closing with a loss of 1.1 per cent. The sentiment continued to worsen, with Nifty experiencing an 8 per cent decline in the month following the Budget announcement, marking it as the worst month between 2011-2022.

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.