An Empirical Analysis of the Effect of Union Budget Announcements on Indian Stock Market Returns

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An Empirical Analysis of the Effect of Union Budget Announcements on Indian Stock Market Returns

Dr. Purwa Srivastava , Dr. Taru Maheshwari , Dr. Smita Singh , Dr. Neha Singh

Vol 18 , Issue 1 , July 2024 | Pages: 65-72

DOI: 10.61691/IPEM_Mgmt.18.2024.65-72

Published Online: July, 2024

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Author Details

1. Dr. Purwa Srivastava, Asstt. Prof, Jaypee Institute of Information Technology, Noida, U.P., India
2. Dr. Taru Maheshwari, Asstt.Prof. Management Department, IPEM, Gzbd, U.P., India
3. Dr. Smita Singh, Assoc. Prof, NIET, Greater Noida, Gautam Budh Nagar., India
4. Dr. Neha Singh, Asstt. Prof., Jaypee Institute of Information Technology, Noida, U.P, India

Every year the government releases the union budget a significant policy statement intended to usher in waves of economic reforms determined by the nation’s economic circumstances. It is the government’s annual disclosure of receipts and outlays for the year beginning on April 1 and ending on March 31. Information must be reflected in stock prices due to capital market efficiency; the extent and kind of this reflection relies on the type of efficiency that exists within the economy. Like any other significant policy statement, the Union budget 2023 is a yearly important policy announcement to usher in waves of economic reforms that are judged required by the nation’s economic conditions. It is the yearly estimate statement. This research tries to apply event study analysis to examine how the introduction of the budget for 2023 affected the Indian stock market. The market is semi-strong and efficient, and the introduction of the budget has a negative impact on it, according to our study’s results, which are analysed using the Event Study. The announcement of the budget has different effects on different sectors.

Keywords

Stock Market Index, Event Study, Returns, Market Efficiency, News Announcement

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Srivastava, Maheshwari , Singh , & Singh. (2024, July 31). An Empirical Analysis of the Effect of Union Budget Announcements on Indian Stock Market Returns. Journal of IPEM, 18(1), 65–72. https://doi.org/10.61691/IPEM_Mgmt.18.2024.65-72