The BSE Sensex has delivered positive returns to investors four times on budget days in the past five years, with the benchmark index posting the largest gain of 5% in closing trade in 2021.

Barring February 1, 2020, when the 30-share BSE benchmark index closed down 987.96 points or 2.42%, the bellwether index closed in positive territory on the budget days of 2023, 2022, 2021 and 2019 .

Finance Minister Nirmala Sitharaman will present the interim budget on Thursday.

“We anticipate that Budget 2024 may not bring major changes to the stock market or investor portfolios, but it will be critical to closely analyze the market impact of any major announcements. This year, market dynamics are expected to be influenced by political and economic factors, with a clear focus on capital expenditure rather than short-term populist measures,” said Suman Bannerjee, chief information officer at Paris-based hedge fund Hedonova.

On Budget Day last year, the BSE benchmark closed at 59,708.08 points, up 158.18 points, or 0.26 per cent.

In 2022, the Sensex rose by 848.4 points, or 1.46%, while in 2021, after the Budget, the Sensex rose by 2,314.84 points, or 5%.

“Following recent state election victories, the upcoming 2024 interim budget appears to eschew grand populist gestures. Instead, the focus will be on maintaining the status quo and keeping a close eye on policy continuity,” said Sharekhan, a brokerage affiliated with BNP Paribas A report said.

“We expect a vibrant narrative around key elements such as capital expenditure, ‘Make in India’ initiative and green energy push,” the report said.

In 2020, the BSE benchmark fell by 987.96 points, or 2.42 per cent, compared with a gain of 212.74 points, or 0.58 per cent, in the previous year.

“2024 appears promising, with markets reaching new highs and economic growth healthy, especially against the backdrop of a global economic slowdown,” the report said.

The BSE benchmark reached an all-time high of 73,427.59 points on January 16, 2024.

“As for the market, we do not expect an immediate reaction to the budget announcement. The announcement came shortly after the Fed’s announcement on the 31st, so the market reaction in the coming weeks will come from a combination of the budget and the Fed announcement.” Global Investment Management the company said.

On Wednesday, a day before the budget announcement, the BSE Sensex gained 612.21 points, or 0.86%, to close at 71,752.11 points.

“While there are some expected increases ahead of the account vote, we believe major policy reforms and announcements are likely to be delayed to the regular budget due in June/July 2024. The capital expenditure and fiscal consolidation path to be followed in the account vote will Given its impact on economic growth and interest rates, it should be monitored closely.

“Capital markets may be a bit excited ahead of the vote but may prefer to wait for the election results and the regular budget before becoming very optimistic,” said Deepak Jasani, head of retail research at HDFC Securities. Equity markets are optimistic What to expect from this year’s budget.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)