Share Market: Negative returns in the stock market on the first day revealed
Share MarketShare Market: Due to the elections, the government presented the interim budget in February, so that the full budget for the 2024/25 financial year could be presented this month. An important fact has come to light in a study some time ago. Research shows that investing in the stock market before the budget deadline for the purpose of making a profit always gives negative returns.
Capitalmin Financial Services conducted a study on this subject. This is a study of market activities on the day of budget presentation from 2000 to today. On this basis, the problem of negative returns was exposed.
Effect of budget announcement on the market
Capitalmind examined the daily stock fund returns of about 500 top companies in the country. The share price of all these companies declined by 0.1% from the budget deadline of 2000 to 2024. Capitalmind is a SEBI registered portfolio manager.
Another conclusion of this research is that the impact of the budget announcement on the stock market is quite negligible. Therefore, the budget is not a good indicator of stock market performance.
Investment decisions based on budget announcements
The study said that long-term stock market investors should not base their investment decisions on budget announcements or expectations. Union budgets generally do not provide an accurate forecast of annual market returns.
Mint quoted Anup Vijayakumar, head of investment and research at Capital Mind, as saying that if one has to invest in the stock market for the long term, it should be based on fundamentals anyway. Expectations are not based on the budget.
