A Study on Impact of Union Budget on Stock Market (NIFTY)

Hemendra Gupta


This research article analyses the impact of budget on stock market by studying the returns in S&P CNX NIFTY for a period ranging from 1991 to 2014. NIFTY returns are analyzed on the day of budget and also 30 days before and after the budget. It is observed from the study that as regard to volatility of returns in market, budget only brings about short-term volatility in daily return of Index; however, there has not been any significant change in daily return near budget days as compared to other days. The stock market seems to adjust and absorb the information within a short period itself.

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