The Indian Budget is an annual financial statement presented by the government of India

outlining its revenues and expenditures for the coming fiscal year. It is typically presented in
Parliament by the Finance Minister in the first week of February.

The Indian Budget is an important event for the economy, as it outlines the government's
financial plans and priorities for the coming year. It is closely watched by investors, businesses,
and individuals, as it can have significant impacts on various sectors of the economy.

The Indian Budget can impact the economy in a number of ways. For example, it may include
changes to tax rates or other fiscal policies that can impact the cost of goods and services. It may
also include announcements of new government programs or initiatives that can impact certain
industries or sectors. Additionally, the Budget may include measures to stimulate economic
growth or address specific challenges facing the economy.

Impact of Budget on Indian stock market

The Indian Budget is an important event for the stock market, as it can impact the performance
of various sectors and industries. According to data for the last 10 years, including interim
budgets and the 2021 Budget, the bears have had an upper hand on Dalal Street in the last seven
of the 13 budget days. This suggests that the market has generally performed worse in the
months following the Budget, although there have been some exceptions.

The best monthly performance since Budget Day was seen in 2016, when the Nifty index was up
10.7%. This was followed by 2011, when the Nifty was up 8.5%, and 2014, when it was up
7.4%. However, the worst monthly performance was seen after the interim budget of 2019, when
the Nifty fell 8%. This was followed by 2018, when it fell 6%, and 2015, when it fell 4.6%.

In the case of the Nifty Midcap 100 index, the 10-year data shows that the performance for the
Budget month has favored the bears seven out of five times. This suggests that the midcap index
has generally performed worse in the months following the Budget, although there have been
some exceptions.
The worst performance for a month was seen in 2019, when the Nifty Midcap index fell 11.6%.
This was followed by 2018, when it fell 6.4%. On the other hand, the index put up a strong
performance in 2016, rising 9.4% in the month following the Budget. It was also up 9% in 2011
and 8.8% in 2014.

What we can except from 2023-24 Budget-

The Union Budget 2023-24 is expected to be populist due to the upcoming 2024 general election.
The Finance Minister will present the budget on February 1st, 2023 and it is expected to continue
and expand on the already laid down path of structural reforms while keeping a targeted fiscal
deficit of 5.8-6%. This budget is likely to be closely watched by investors due to the potential
impact on the economy and financial markets. There may be additional volatility in the financial
markets as the budget is announced, but it's also expected to lay out policies and initiatives that
will ultimately benefit the economy and the financial markets in the long-term.

Some of the sectors to keep an eye on-

. Some of the sectors that investors should keep an eye on include Energy, Healthcare & Pharma,
Speciality Chemicals, Technology and Manufacturing.

The Energy sector, particularly renewable energy, is expected to see significant investments and
policy changes. The government is expected to continue its efforts to increase the use of clean
and sustainable energy sources, and to make the country self-reliant in energy production.
Investors in this sector should keep an eye out for announcements related to tax incentives,
subsidies and investment in renewable energy projects.

The Healthcare & Pharma sector is also expected to see a boost in the budget with the
government focusing on expanding and strengthening the healthcare infrastructure. This may
include increased investments in hospitals, medical colleges, and other healthcare facilities.
Additionally, the government may also announce policies to encourage domestic manufacturing
of drugs and medical devices.

The Speciality Chemicals sector is another area that is expected to see a boost in the budget.
The government is expected to announce policies to encourage domestic manufacturing of
specialty chemicals, which are used in various industries such as textiles, automotive and
pharmaceuticals.

The Technology sector is also expected to see significant investments and policy changes. The
government is expected to continue its efforts to increase the use of technology in various sectors
such as agriculture, education, and healthcare. This may include increased investments in digital
infrastructure, research and development, and skill development programs.

The Manufacturing sector is also expected to see a boost in the budget. The government is
expected to announce policies to encourage domestic manufacturing of various products, such as
textiles, automobiles, and electronics. Additionally, there may be announcements related to tax
incentives, subsidies and investment in the manufacturing sector.

Overall, these are the sectors that investors should keep an eye on as the Union Budget 2023-24
is announced. They may see significant investments and policy changes that can have a positive
impact on the sectors and the companies operating in them. Investors are advised to stay
informed about the budget and its implications and to carefully evaluate the risks and rewards of
each investment.