Pre-Budget Rally defies history, odds

Historically, the market is known to be cautious ahead of the Union Budget. The average one-month Sensex return one month before the Budget has been a negative four per cent since 2006. Moreover, Sensex return a month ahead of the Budget has been negative in all the past 12 instances. Defying odds, the market has been upbeat in the run-up to the Budget this time around. The Sensex has gained 2.3 per cent since January 1 and six per cent since December 26. Market players say share prices are rallying on sky-high expectations from this year’s Budget. The government is