There is often a fall in the month before the budget

The recent big fall in the stock market may be troubling investors, but the data shows that such declines often take place in the month before the budget. In the last 10 years, the market has fallen on 6 occasions in the month before the budget. So far this year too, the Sensex is down 395.67 points (0.7%) from the level of 31 December 2021.

There is often a fall in the month before the budget

This fall is much less than the 7.5% fall in the pre-Budget month of 2016. Analysts believe that by the time the budget is presented on February 1, the market will recover from this fall and show an uptrend. Research Head, LKP Securities S. According to Ranganathan, there is a possibility of a post-budget rally this year despite heavy volatility in the market. The reason is, investors don't expect much from the budget. In such a situation, the possibility of a disappointing budget coming is also less.

Inflation has increased worldwide for the past few weeks due to rising crude oil prices and other reasons. To reduce its heat, the US central bank is watching the action of the Fed. The company's results for the December quarter have started coming in. So far, they have almost lived up to the market expectations. Rest of the results will have an impact on the sentiment. The five-day decline in the domestic stock market ended on Tuesday.

The Sensex ended up 367 points (0.64%) at 57,858 and the Nifty climbed 129 (0.75%) to end at 17,278. Investors bought in banking, auto and FMCG stocks amid a firm trend in European markets. However, the overall sentiment remained cautious ahead of the US central bank Federal Reserve meeting. The Sensex has lost 3,817 points and the Nifty 1,159 points in the last five days.