Don’t rush to go to D-Street on Budget Day, just wait a minute

The benchmark indices have shown a lackluster performance on Union Budget day over the past decade. The Nifty 50 and the BSE Sensex have moved less than 1% five times during this period. However, both were relatively stronger a week after the main event, making wins seven times out of ten.A month after the Budget was announced, the Nifty witnessed swings of around 8% on both sides during the period under review. Moreover, benchmark indices rose six out of ten times three months after the Budget, barring the steep 20% decline in 2020. In 2025, both Nifty and Sensex rose by almost 4% three months after the Union Budget.

The broader market has even mirrored the budget benchmark performance. he rose day. In the past seven Union Budgets, the Nifty Midcap 150 index ended lower on Budget Day five times, declining as much as 2.4%. This trend reversed in the index’s performance a week later, with the index rising five times.

Three months after Budget Day, the broader market witnessed sharp swings on both sides over the past decade. For the Nifty Midcap 150 index, the highest increase was around 13% in 2021, while the sharpest decline was 24% in 2020. Over the past decade, the Nifty Smallcap 250 rose 19%, but fell as much as 30% three months after Budget Day.

A week after the budget, the Nifty Smallcap 250 index advanced seven times in the past decade, with gains of up to 8.9%.