The Union Budget for 2021-22 is probably to be tabled in Parliament on February 1, 2021. This spending budget will be intriguing to watch on how Finance Minister Nirmala Sitharaman plans to reboot the Indian economy currently battered by COVID-19 pandemic. FM Sitharaman on Tuesday stated the forthcoming Budget for 2021-22 will sustain the momentum of public spending on infrastructure and have a “vibrancy” to make certain the financial revival continues. She also stated that the pace of divestment will quickly choose up in the coming months. From the Indian share industry point of view, the final seven years have been mixed below the Narendra Modi-led government. The initially Union Budget 2014 below the Modi government was presented by then Finance Minister Arun Jaitley on July 10, 2014. In the final seven years, the Budget year 2015-16 was the only year when the 30-share index Sensex gave a adverse return, with a fall of 21 per cent.
2014-15: Narendra Modi-led NDA comes to energy
The Narendra Modi-led National Democratic Alliance (NDA) came to energy in 2014, defeating the Congress-led United Progressive Alliance (UPA) in the Lok Sabha election. The year witnessed a host of events such as alterations to the labour laws, foreign investment in infrastructure and actual estate sectors, the Reserve Bank of India’s (RBI) fight against inflation, ‘Make in India’ initiative, and so on. From July 10, 2014, to February 27, 2015, the S&P BSE Sensex gained 14.53 per cent throughout the spending budget year.
2015-16: Complicated year for Indian share industry
The spending budget year 2015 was a difficult year for the Indian stock markets as the events such as muted corporate earnings, subnormal monsoons, fall in commodity and oil rates along with interest price cuts by the central bank, dented the investor sentiment. All these events led to a fall of 21.27 per cent in the S&P BSE Sensex from February 28, 2015, to February 26, 2016.
2016-17: Demonetisation
The primary occasion of the Budget year 2016-17 was demonetisation. Prime Minister Narendra Modi announced the withdrawal of the legal tender status of the Rs 500 and Rs 1,000 currency notes on November 8, 2016, to deal with black income challenges. However, in September, the Indian army attacked some terror camps on the other side of the border with Pakistan, which created investors cautious more than the increasing geopolitical tensions involving each nations. Globally, Donald Trump won the US Presidential election 2016. During this spending budget year from February 29, 2016, to January 31, 2017, the S&P BSE Sensex rose 19 per cent.
2017-18: GST
Indian stock industry benchmark BSE Sensex zoomed 30 per cent in the period from February 1, 2017, to January 31, 2018. The Budget year 2017-18 saw the implementation of Goods and Services Tax (GST) and the victory of Bhartiya Janta Party (BJP) in assembly elections in the essential states such as Uttar Pradesh, Gujarat and Himachal Pradesh.
2018-19: Imposition of LTCG on investments
The spending budget year 2018-19 was extremely volatile for the Indian equities, as BSE Sensex just gained more than half a per cent, .57 per cent. The year witnessed the imposition of Long term capital gains (LTCG) tax on the investments, resignation of RBI governor Urjit Patel, US-China trade deal which kept the investors on tenterhook.
2019-20: Narendra Modi-led govt wins Lok Sabha election for second term
From February 1, 2019, to February 1, 2020, S&P BSE Sensex gained 11.75 per cent. This spending budget year Indian stock markets witnessed Lok Sabha election 2019, slowing financial development, enormous corporate tax price cuts, tussle involving the RBI and the government, the resignation of the RBI deputy governor Viral Acharya, complete Union Budget, a total of 135 bps repo price reduce, Ayodhya verdict, abrogation of Article 370, US-China trade deal, have been amongst the main triggers.
2020-21: Coronavirus pandemic
COVID-19 pandemic changed the way organizations operate in the nation. In an work to curb this rapid-spreading pandemic, India went on a nationwide lockdown from March 24, 2020. But ahead of that, this illness had currently peaked in some European nations. On March 23, Indian share markets suffered a enormous sell-off. In the early bargains on that day, trading in the share industry was halted for 45 minutes as the Sensex hit a decrease circuit limit of 10 per cent. That day, the S&P BSE Sensex plunged 3,935 points or more than 13 per cent to settle at 25,981. But considering the fact that then, Indian benchmarks have recovered and are now trading at record higher levels. Sensex’ year-to-date (YTD) returns from February 1, 2019 to December 16, 2020 (opening level) is 17.21 per cent.