Households liked the Union Budget

While equity markets react to budget announcements in real time, households we believe, take a little longer to digest it. Households are not as cued in as financial markets are

The Indian stock markets welcomed the union budget with the major indices pencilling higher than normal returns. The most comprehensive index – the CMIE Overall Share Price Index (COSPI) that houses over three thousand actively traded scrips recorded a 1.2 per cent gain on the day of the budget and another 1.2 per cent on the following day. It shed part of these gains on the following two days. Nevertheless, the week of the union budget yielded a gain of 2.6 per cent, which is much better than what a week usually generates on the Indian bourses. Average weekly returns