Markets: Before, during, and after Budget

Market performance in the run-up to the Budget this year has been one of the worst in many years. Although stock prices have rebounded following gains in the past four sessions, benchmark indices are still down over four per cent in the past fortnight. The Sensex is down 4.4 per cent and nine per cent in the past one month and three months, respectively.

In comparison, the average market returns one month and three months before the Budget for the past 10 years are minus three per cent and four per cent, respectively.

Typically, the market performance has been better post-Budget in the past 10 years for the period under consideration. Interestingly, the market performance has been lukewarm in the past three Budget days, with the benchmark Sensex changing less than half a per cent.