Page 43 - 2024

Ph.D.
(Management)
IMPACT OF UNION BUDGET ANNOUNCEMENT ON NSE SECTORAL
INDICES: TESTAMENT FROM INDIA

Ph.D. Scholar : Nirali Rupeshkumar Rathod
Research Supervisor : Dr. Abhishek Parikh

Regi. No.: 19276111014
Abstract :
The union budget formally announces future expenditures for the overall economy's
growth. It includes government plans for the following year. A quality budget is a guide to
the government in making numerous policies, and it also gives investment direction to
the investors. The government decides on the budget based on the current
circumstances of the economy. It reflects what the economy was and what the future
economy will be. In India, the annual and union budgets are one kind of event passed in
the parliament house, generally known as "Sansad".

In India, stock market prices are affected due to each macro change in the country and
economy. Macro variables include domestic and global factors affecting the stock
market. The boom and recession cycle of the economy depends on the rise or fall in the
share prices. The stock market reflects the economic condition of the country, which is
why it is considered the economic mirror or pulse of the economy. It reveals the actual
financial stability and the economy's health.

Stock market indices have been created to show a company's shares' volatility. A stock
market index or indices are a way to quantify the relative worth of a collection of stocks.
(NSE India). An index is crucial to compare the performance of investments to a pertinent
market index.

Stock market returns strike due to economic changes or any political amendment.
Therefore, this study measures the impact of Budget announcements on selected
sectoral indices. The following indices have been included in the study.

1. Nifty Auto

2. Nifty Bank

3. Nifty FMCG
4. Nifty Financial services

5. Nifty IT

6. Nifty Media

01