Diverse responses to the Budget

The finance minister did very well for equity market investors. How did she fare with households?

The presentation of the Indian Union Budget is an event of much hype and hoopla. Markets and households seem to repose inexplicable expectations on the government delivering a path-breaking Budget. Financial market investors bet on the Budget’s impact on their wealth and households hold their breath in expectation of tax relief.

Important people rate the Budget often through an exuberant media. But, there are better ways to judge the popularity of Budget announcements. Independent of what they say on TV, investors rate the Budget far more honestly when they vote with their money. Investors were evidently happy with the Budget.