Union Budget 2024 : How Bank Nifty has moved Past 21 Budget

Intreim Union Budget 2024 will be presented on 23 July 2024 by Honorable Finance Minister Shri Nirmala Sitharaman ji.

The mood in the market is quite Euphoric ,Market is going into Budget with High  expectation and no News Leak to Media.

The Union Budget is a significant event in India’s financial calendar, influencing market sentiments and economic trends. Analyzing how Bank Nifty has reacted to past budgets provides valuable insights for traders and investors. Here’s a detailed look at the performance of Bank Nifty during the previous 21 Union Budgets.

Union Budget is just 2 days away, Below are the Bank Nifty range from 2006-2024. Maximum Range on Budget day is 2525 points so big volatile move on cards, so trade cautiously.

Out of 21 Budget Presented When Bank Nifty started Trading we have 10 Budget where we had Positive Close and 11 Budgets we had negative close.

Key Patterns and Observations

Positive Budget Impact

• Growth-Oriented Policies: Budgets focusing on economic growth, infrastructure development, and financial sector reforms generally boost Bank Nifty.
• Banking Sector Support: Announcements of capital infusion in public sector banks and measures to tackle NPAs have historically led to positive movements.

Negative Budget Impact

• Increased Taxation: Budgets introducing higher corporate taxes or new banking sector regulations tend to negatively impact Bank Nifty.
• Fiscal Deficit Concerns: High fiscal deficit projections often lead to market apprehension, causing a dip in Bank Nifty.

Notable Budget Years

2019

• Key Announcements: Major reforms in the banking sector, including PSU bank recapitalization.
• Market Reaction: Positive surge in Bank Nifty, reflecting investor optimism.

2020

• Key Announcements: Introduction of measures to boost the economy amid COVID-19.
• Market Reaction: Initial negative reaction due to global uncertainties, followed by recovery.

2021

• Key Announcements: Emphasis on healthcare, infrastructure, and digital payments.
• Market Reaction: Significant positive response, Bank Nifty rallied post-budget.

2022

• Key Announcements: Continued focus on infrastructure and growth, minimal new taxes.
• Market Reaction: Steady growth in Bank Nifty, reflecting long-term positive sentiment.

01-Feb-2024 Intraday Chart

01-Feb-2023 Intraday Chart

01-Feb-2022 Intraday Chart

01-Feb-2021 Intraday Chart

Most of the traders end up losing a lot of money when trading on the budget day. As most of them are not prepared both technically and Psychologically to adjust with the wild swings in market. Traders having small capital less than 5 lakhs should just stay away from market and watch the show from sidelines. Protection of Capital is 1 Goal of Trader. We will be sharing levels on Twitter and Facebook to help you navigate on Budget day with Profits.

Conclusion

Analyzing the past 21 Union Budgets reveals that Bank Nifty’s movement is closely tied to the policies affecting the banking sector and overall economic health. Growth-oriented, supportive budgets generally lead to positive movements, while budgets introducing restrictive measures or indicating high fiscal deficits can lead to declines. Understanding these patterns can help investors and traders make informed decisions during the Union Budget announcements.