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Budgets that miss on fiscal deficit and lack sector-specific incentives cause 2-3% Nifty falls. Consumer and Auto stocks underperform most. The 1-month return tends to be negative if the budget coincides with a growth slowdown.
Nifty 1 Day
-2.5%
Nifty 3 Days
-3.0%
Nifty 1 Week
-3.5%
Nifty 1 Month
-8.2%
Budget 2020 announced a new optional income tax regime and fiscal deficit target of 3.8% (above 3.5% forecast). No major consumption booster, no NBFC support, no auto sector relief. Nifty fell 2.5% on Budget Day — worst since 2009.
No clear winners in the historical data.
No direct auto sector incentives
No rural consumption stimulus
No NBFC liquidity measures
Budget 2020 announced a new optional income tax regime and fiscal deficit target of 3.8% (above 3.5% forecast). No major consumption booster, no NBFC support, no auto sector relief. Nifty fell 2.5% on Budget Day — worst since 2009.
The Nifty 50 moved -3.5% in the following week and -8.2% over the following month.
Budgets that miss on fiscal deficit and lack sector-specific incentives cause 2-3% Nifty falls. Consumer and Auto stocks underperform most. The 1-month return tends to be negative if the budget coincides with a growth slowdown.
Regime
bull
Repo Rate
5.15%
India VIX
16.5
Data Confidence
85%