Indian stocks continue 6-year tradition of subdued market reaction to Union Budget

Most market participants were hopeful of markets surging on the back of positive key reforms, however, investors' sentiment faded after the announcement.

According to the data, in the last 6 years, the market has remained unbelievably quiet on the day of Union Budget. On 10 July 2014 (Union Budget day), the market remained completely unchanged, despite Prime Minister Narendra Modi winning the elections for the first time.

Source: Moneycontrol

On 1 February, 2019 (Interim Budget), the market saw an upswing of 1 percent in the benchmark indices. However, in most cases, the bears have dominated the D-Street bringing in muted sentiment, and this Budget has been no different.

Sectoral indices ended mixed for the day. The metal index lost the most, down 3.8 percent followed by the Nifty Realty (down 3.6 percent), the Nifty Auto (down 2.8 percent) and the Nifty IT (down 2.5 percent). Meanwhile, the Nifty FMCG and the Nifty PSU Banks rose 0.3 percent and 0.2 percent, respectively.