Budget 2024 will be presented today and what about stock market
Today, on 23 July 2024, Finance Minister Nirmala Sitharaman is scheduled to present the country’s annual budget, known as Budget 2024, in Parliament. As is usually the case, there is a lot of excitement and buzz in the stock market ahead of this event. Predicting the market’s performance on budget day is challenging at this time. However, historical data from the past decade shows that the stock market has risen six times and fallen four times on budget presentation days. This historical perspective suggests a mixed but optimistic outlook for market participants awaiting the budget’s impact on stock prices.
How much is capital of Indian Stock Market
The capitalization of the Indian stock market has risen to $5.2 trillion, representing a remarkable increase of 296% from its lowest level of $1.3 trillion in March 2020. This growth has also increased its representation in the MSCI AC World Index to 1.96%, up significantly from 0.93% during the same period. Despite this positive trend, the market capitalization is now 145% of GDP, a significant increase from the 52% recorded in March 2020.
Interesting facts
In independent India, there are important milestones associated with the presentation of the budget. India’s first general budget was presented on November 26, 1947, by RK Shanmukham Chetty, who served as the country’s first finance minister. Morarji Desai holds the record of presenting 10 budgets during his tenure as finance minister under both prime ministers Jawaharlal Nehru and Lal Bahadur Shastri. P Chidambaram presented nine budgets, while Pranab Mukherjee presented eight during his tenure as finance minister. Notably, former prime minister Manmohan Singh presented the budget five times in a row between 1991 and 1995, serving as finance minister in the P V Narasimha Rao government.
Will the market fall?
According to Christopher Wood, global head of equity strategy at Jefferies, despite recent strong rallies, the Indian stock market is considered nascent in developing a robust equity market. As we near the announcement of Budget 2024 on July 23, any potential alteration in capital gains tax concerning equities might prompt a substantial market correction, reminiscent of reactions seen possibly after the Lok Sabha election results on June 4.
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