Want to know which sectors outperformed Nifty 50 month after Budget announcement? Read here!

The most-awaited event of the year i.e. the Union Budget 2021 would be announced on February 1, 2021. The corporates and common man await favourable announcements with bated breath as Finance Minister Nirmala Sitharaman indicated this Budget to be like “never before”.

What is more important for the market participant is to know historically which sectors performed well post the Budget announcements. To help the market participants know exactly which sectors performed well and which lagged behind, we have done an analysis of the last 10 Budgets, which includes Interim Budget as well. We have analysed one-month performance post the Budget announcement of key sectors and the broader indices (Nifty Mid-cap, Nifty Small-cap and Nifty 500) against NSE Nifty 50 Index.

So, let’s get started. The Union Budget of India for 2013-14 was presented by P Chidambaram on February 2013. Below is the post Budget one-month performance of the key sectors and the broader indices against NSE Nifty 50 Index.

From the above chart, it’s clear that Nifty FMCG, Nifty Pharma and Nifty IT were the top three sectors that outperformed Nifty 50 index. Meanwhile, the broader indices such as, Nifty 500, Nifty Mid-cap and Nifty Small-cap underperformed the index.

The Interim Union Budget for 2014–2015 was presented on February 17, 2014. Below is the post Budget one-month performance of the key sectors as well as the broader indices against NSE Nifty 50 index.

From the above chart, it’s amply clear that Nifty Realty, Bank Nifty and Nifty Financial Services were the top three sectors which outperformed Nifty 50 index. As we can see, majority are interest-rate sensitive sectors that outperformed Nifty 50 index. Interestingly, in the broader indices, Nifty Small-cap index and Nifty Mid-cap outperformed Nifty 50 index by a small margin.

The Union Budget of India for 2014–2015 was presented by Arun Jaitley on July 10, 2014. Below is the performance of the key sectors and the broader indices of NSE Nifty 50 index within a month after Budget announcement.

As you can see in the above chart, Nifty IT, Nifty Pharma and Nifty FMCG emerged as the top three sectors which outperformed Nifty 50 index while the broader indices underperformed Nifty 50 index.

The Union Budget of India for 2015–2016 was presented by Arun Jaitley on February 28, 2015. Below is the performance of the key sectors as well as the broader indices against NSE Nifty 50 index within a month after Budget announcement.

From the above chart, it’s clear that Nifty Pharma and Nifty Private Bank were the top two sectors which outperformed Nifty 50 index. Interestingly, the broader indices have also outperformed Nifty 50 index.

The Union Budget of India for 2016–2017 was presented by Arun Jaitley on February 29, 2016. Below is the post Budget one-month performance of the key sectors and the broader indices against NSE Nifty 50 index.

The above chart shows that Nifty Pharma, Nifty Realty and Nifty Metal were the top three sectors which outperformed Nifty 50 index. In the broader indices, Nifty Small-cap outperformed Nifty 50 index.

The Union Budget of India for 2017–2018 was presented by Arun Jaitley on February 1, 2017. Below is the post Budget one-month performance of the key sectors and the broader indices against NSE Nifty 50 index.

From the above chart, it’s amply clear that Nifty IT, Nifty Realty and Nifty Pharma were the top three sectors that outperformed Nifty 50 index. Not only this, all the broader indices also outperformed Nifty 50 index.

The Union Budget of India for 2018-19 was presented by Arun Jaitley on February 1, 2018. Below is the performance of the key sectors and the broader indices against NSE Nifty 50 index.

From the above chart, it’s quite evident that Nifty IT, Nifty Pharma and Nifty Metal were the top three sectors that outperformed Nifty 50 index. While on the broader indices’ front, barring Nifty Mid-cap, all other indices outperformed Nifty 50 index marginally.

The Interim Budget of India for 2019-20 was presented by Piyush Goyal on February 1, 2019. Below is the post Budget one-month performance of the key sectors and the broader indices against NSE Nifty 50 Index.

The above chart shows that Nifty Metal, Nifty IT, Nifty Private Bank and Nifty Pharma were the top four sectors that outperformed Nifty 50 index. Meanwhile, on the broader indices’ front, barring Nifty Small-cap, all other indices more or else performed in line with Nifty 50 index.

The Union Budget of India for 2019-20 was presented by Nirmala Sitharaman on July 5, 2019. Below is the post Budget one-month performance of the key sectors and the broader indices against NSE Nifty 50 Index.

From the above chart, it’s amply clear that Nifty IT, Nifty Pharma and Nifty FMCG were the top three sectors that outperformed Nifty 50 index while majority of the broader indices outperformed Nifty 50 index.

The Union Budget of India for 2020-21 was presented by Nirmala Sitharaman on February, 2020. Below is the post Budget one-month performance of the key sectors and the broader indices against NSE Nifty 50 Index.

The above chart shows that Nifty Financial Services, Bank Nifty and Nifty Private Bank were the top three sectors that outperformed Nifty 50 index. It also shows that the performance of Nifty 500 was in line with the performance of Nifty 50. The chart depicts both Nifty Mid-cap and Small-cap underperformed Nifty 50 Index.

The above analysis gives us a clear indication that one-month post Budget, the performance of Nifty Pharma and Nifty IT is better than Nifty 50 index. Hence, these two sectors should be on the watch list of the market participants in the coming days.