The Finance Minister Nirmala Sitharaman is all set to present the Union Budget on July 23, marking the first full budget post the 2024 elections. With the economy showing robust growth and stock market indices like the Sensex and Nifty reaching record highs, there’s a lot at stake.
#budget 2024, #market, #financeminister
~PR.320~ED.148~HT.96~GR.124~
#budget 2024, #market, #financeminister
~PR.320~ED.148~HT.96~GR.124~
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NewsTranscript
00:00Welcome back to a special coverage of the Union Budget 2024. I am Shravani Sinha and
00:09today we are diving into the historical trends of the Indian stock market performance on
00:13the budget day. The Finance Minister Nirmala Sitharaman is all set to present the Union
00:18Budget on July 23, marking the first full budget post 2024 elections. With the economy
00:25showing robust growth and the stock market indices like Sensex and Nifty reaching record
00:30highs, there's a lot at stake. But beneath this rally, are current market valuations
00:36justified by economic fundamentals? Let's take a historical walk to understand what
00:42we might expect. Historically, market reactions around budget days have been quite telling.
00:48For instance, in 2004, the market saw a sharp decline on budget day, but recovered the following
00:55month. In 2009, there was a dramatic drop over 5% on the budget day itself, but the
01:01month prior saw gains about 15%. In 2014 and 2019, we witnessed mixed results with initial
01:10declines, but positive returns leading up to and after the budget presentation. Now,
01:16let's look at the current economic context. On one hand, advancements in infrastructure,
01:22defence and manufacturing has boosted India's economic foundation. Some analysts argue that
01:29high market valuations reflect India's growth potential. On the other hand, there's a sentiment
01:36that these valuations are detached from economic realities. As we approach the budget day,
01:41various stakeholders have outlined their priorities. With resources at the government's disposal,
01:47including a dividend from the Reserve Bank of India, there's room for impactful economic
01:52decisions. Key considerations include reducing the fiscal deficit while maintaining high
01:57capital expenditure, boosting infrastructure projects and stimulating consumption, especially
02:03in rural areas. The challenge lies in balancing these priorities to maximize economic growth.
02:10Encouraging private sector investment and stimulating rural consumption will be crucial.
02:16Balancing economic goals with political realities, the government must manage resources carefully
02:22to ensure sustainable growth. As Finance Minister Nirmala Sitharaman prepares to unveil the
02:27Union Budget 2024, all eyes will be on how the government plans to harness the current
02:33economic momentum while addressing underlying concerns. This budget's impact on market performance,
02:40private sector investment and overall economic growth will be closely watched, making it
02:45one of the most anticipated budgets in recent years. Thank you for joining us today. Stay
02:50tuned for more updates on the Union Budget 2024. We'll see you next time.