{"id":3627,"date":"2024-03-04T16:01:22","date_gmt":"2024-03-04T10:31:22","guid":{"rendered":"https:\/\/journal.ipem.edu.in\/management\/?page_id=3627"},"modified":"2024-03-21T10:44:39","modified_gmt":"2024-03-21T05:14:39","slug":"an-empirical-analysis-of-the-effect-of-union-budget-announcements-on-indian-stock-market-returns","status":"publish","type":"page","link":"https:\/\/journal.ipem.edu.in\/management\/an-empirical-analysis-of-the-effect-of-union-budget-announcements-on-indian-stock-market-returns\/","title":{"rendered":"An Empirical Analysis of the Effect of Union Budget Announcements on Indian Stock Market Returns"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"3627\" class=\"elementor elementor-3627\">\n\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-3b3d6bf elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3b3d6bf\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d724340\" data-id=\"d724340\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c722ad7 elementor-widget elementor-widget-heading\" data-id=\"c722ad7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">An Empirical Analysis of the Effect of Union Budget Announcements on Indian Stock Market Returns<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-12c9a41 elementor-widget elementor-widget-html\" data-id=\"12c9a41\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t<a class=\"author\" href=\"https:\/\/journal.ipem.edu.in\/management\/an-empirical-analysis-of-the-effect-of-union-budget-announcements-on-indian-stock-market-returns\/#author\"> <em> Dr. Purwa Srivastava <\/em><\/a>,\r\n\t<a href=\"https:\/\/journal.ipem.edu.in\/management\/an-empirical-analysis-of-the-effect-of-union-budget-announcements-on-indian-stock-market-returns\/#author\"> <em>  Dr. Taru Maheshwari <\/em><\/a>,\r\n\t<a href=\"https:\/\/journal.ipem.edu.in\/management\/an-empirical-analysis-of-the-effect-of-union-budget-announcements-on-indian-stock-market-returns\/#author\"> <em>  Dr. Smita Singh   <\/em><\/a>,\r\n\t<a href=\"https:\/\/journal.ipem.edu.in\/management\/an-empirical-analysis-of-the-effect-of-union-budget-announcements-on-indian-stock-market-returns\/#author\"> <em>  Dr. Neha Singh  <\/em><\/a>\r\n\r\n\r\n\r\n\r\n                                        <p class=\"Issue\"><a href=\"https:\/\/journal.ipem.edu.in\/management\/an-empirical-analysis-of-the-effect-of-union-budget-announcements-on-indian-stock-market-returns\/\">Vol 18 ,  Issue 1 ,   July 2024<\/a><span class=\"pipe\"> | <\/span>Pages: 65-72\r\n                                        <\/p>\r\n                                        \r\n                  \r\n\t<p class=\"doi\">DOI: <a href=\"https:\/\/journal.ipem.edu.in\/management\/an-empirical-analysis-of-the-effect-of-union-budget-announcements-on-indian-stock-market-returns\/\">10.61691\/IPEM_Mgmt.18.2024.65-72    <\/a><\/p>\r\n\r\n                                        <p class=\"Published\"><span class=\"articledate\">Published Online: July, 2024<\/span><\/p>\r\n                                <p class=\"Download\">        <a href=\"https:\/\/journal.ipem.edu.in\/management\/wp-content\/uploads\/2024\/03\/8.pdf\" target=\"_blank\">Download Article<\/a><\/p>\r\n                    \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1eb397b elementor-widget elementor-widget-eael-adv-tabs\" data-id=\"1eb397b\" data-element_type=\"widget\" data-widget_type=\"eael-adv-tabs.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t        <div data-scroll-on-click=\"no\" data-scroll-speed=\"300\" id=\"eael-advance-tabs-1eb397b\" class=\"eael-advance-tabs eael-tabs-horizontal eael-tab-auto-active  active-caret-on\" data-tabid=\"1eb397b\">\n            <div class=\"eael-tabs-nav\">\n                <ul class=\"\" role=\"tablist\">\n                                            <li id=\"author\" class=\"inactive eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"true\" data-tab=\"1\" role=\"tab\" tabindex=\"0\" aria-controls=\"author-tab\" aria-expanded=\"false\">\n                            \n                            \n                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Author Affiliations<\/span>                                                    <\/li>\n                                            <li id=\"abstract\" class=\"inactive eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"2\" role=\"tab\" tabindex=\"-1\" aria-controls=\"abstract-tab\" aria-expanded=\"false\">\n                            \n                            \n                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Abstract<\/span>                                                    <\/li>\n                                            <li id=\"references\" class=\"inactive eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"3\" role=\"tab\" tabindex=\"-1\" aria-controls=\"references-tab\" aria-expanded=\"false\">\n                            \n                            \n                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >References<\/span>                                                    <\/li>\n                                            <li id=\"citation\" class=\"inactive eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"4\" role=\"tab\" tabindex=\"-1\" aria-controls=\"citation-tab\" aria-expanded=\"false\">\n                            \n                            \n                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Citation<\/span>                                                    <\/li>\n                                    <\/ul>\n            <\/div>\n            \n            <div class=\"eael-tabs-content\">\n\t\t        \n                    <div id=\"author-tab\" class=\"clearfix eael-tab-content-item inactive\" data-title-link=\"author-tab\">\n\t\t\t\t        <p class=\"Author-bg\"><b>Author Details<\/b><\/p>\n\n<div class=\"card-body table-responsive\">\n<div class=\"autinfo\"><b class=\"sn\">1. <\/b> Dr. Purwa Srivastava, Asstt. Prof, Jaypee Institute of Information Technology, Noida, U.P., India<\/div>\n<div class=\"autinfo\"><b class=\"sn\">2. <\/b> Dr. Taru Maheshwari, Asstt.Prof. Management Department, IPEM, Gzbd, U.P., India<\/div>\n<div class=\"autinfo\"><b class=\"sn\">3. <\/b> Dr. Smita Singh, Assoc. Prof, NIET, Greater Noida, Gautam Budh Nagar., India<\/div>\n<div class=\"autinfo\"><b class=\"sn\">4. <\/b> Dr. Neha Singh, Asstt. Prof., Jaypee Institute of Information Technology, Noida, U.P, India<\/div>\n<\/div>                    <\/div>\n\t\t        \n                    <div id=\"abstract-tab\" class=\"clearfix eael-tab-content-item inactive\" data-title-link=\"abstract-tab\">\n\t\t\t\t        <p style=\"text-align: justify;\">Every year the government releases the union budget a significant policy statement intended to usher in waves of economic reforms determined by the nation&#8217;s economic circumstances. It is the government&#8217;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&#8217;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&#8217;s results, which are analysed using the Event Study. The announcement of the budget has different effects on different sectors.<\/p><p class=\"keywords\">Keywords<\/p><p>Stock Market Index, Event Study, Returns, Market Efficiency, News Announcement<\/p>                    <\/div>\n\t\t        \n                    <div id=\"references-tab\" class=\"clearfix eael-tab-content-item inactive\" data-title-link=\"references-tab\">\n\t\t\t\t        <ol><li>Amit Balkrishna Joshi, Dr. Manas Mayur (2017), \u201cA study of the Impact of Dividend Announcement on Stock Prices\u201d, Journal of Advance in Social Science and Humanities, Vol.01, Issue 1 pp 83-90<\/li><li>Babu, S. Suresh and Venkateswarlu (2013). Impact of Union Budget on Indian Stock Prices. International Journal of Management Research and Review, Article No-7\/2890- 2896 Issn: 2249-7196, Volume 3, Issue 5<\/li><li>Coutts, J. A., Mills, T. C., &amp; Roberts, J. (1994). The market model and the event study method: A synthesis of the econometric criticisms. International Review of Financial Analysis, 3(2), 149\u2013171. doi:10.1016\/1057- 5219(94)90023-x<\/li><li>Dinh Bao Ngoc, Nguyen Chi Cuong (2016), \u201cDividend Announcement and Ex-dividend effects on stock return \u201c, International journal of Economics and Finance, Vol.08, Issue 1 pp 207<\/li><li>Divya Verma Gakhar, Ms. Neha Kushwaha and Ms. Vinita Ashok (2015), \u201cImpact of Union Budget on Indian Stock Market\u201d, Scholedge International Journal of Management &amp; Development, Vol.02, Issue 11 pp 21-36<\/li><li>Dr. Sukhjeet K. Matharu, Dr. Ravi Changle (2015), \u201cAn Empirical study of stock prices\u2019 sensitivity to Dividend Announcement\u201d, Pacific Business Review international, Vol.08, Issue 03 pp 21-36<\/li><li>Fama, E., Fisher, E., Jensen, M. C., and Roll, R., (1969). \u201cThe adjustment of stock prices to new information\u201d, International Economic Review, Vol. 10, No. 1, pp.1-21.<\/li><li>Gupta, Arindam, and Kundu, Debashis (2006). A Study of the Impact of Union Budgets on Stock Prices in India. The ICFAI Journal of Applied Finance, Volume 12, 10, 65-76<\/li><li>Khanna, K., &amp;Gogia, N. (2014). A Pragmatic Study of Budget Announcements &amp; Stock Market Performance: India, US &amp; UK Panorama. VSRD International Journal of Business and Management Research, 4.<\/li><li>Kutchu, Vishal (2012). Testing Semi-Strong Efficiency of Indian Stock Market &#8211; A Study on Effect of Union Budget 2012 on Six Select Sectoral Stocks. International Refereed Research Journal, Volume III, 3(2), 74<\/li><li>Md Lutfor Rahmon, Mohammad Ruhul Amin, Md. Noman Siddikee (2012), \u201cDeclaration effect of Cash &amp; stock dividends on share price\u201d, Asian business review, Vol.01, Issue 1 pp 72-79<\/li><li>Mohanty Munmun (2004), \u201cStock Market reaction to announcement of policy changes \u201c, The ICFAI Journal of Applied finance, Dec 2004<\/li><li>Neetu Mehndiratta, Shuchi Gupta (2010),\u201d Impact of Dividend Announcement on Stock prices\u201d, International journal of Information Technology and knowledge Management, Vol.05, Issue 1 pp 213-225<\/li><li>Obaidullah. M (1990), \u201cStock prices adjustment to half-yearly earnings announcement \u2013 A test of Market efficiency\u201d, Chartered Accountant, Vol.38, pp. 922-924.<\/li><li>R. Deepak &amp; N. Bhavya, (2014), An Event Study Analysis of Union Budget Announcement on Broad and Sectoral Indices of Indian Stock Market, International Journal of Innovative Research &amp; Development, Vol 3 Issue 12, pp. 1-21<\/li><li>Rane Anjali, Guntur Anjana Raju (2017), \u201cDividend Announcement and Market Efficiency- An Empirical Study on service sector companies listed on BSE\u201d, Sdmimd Journal of management, Vol.08, Issue 1 pp 1-10<\/li><li>Ranjani, R.P.C., Sujeewa, Mudith and Rathnasiri, U.A.H.A. (2009), \u201cThe impact of the government budget announcement on Colombo Stock Exchange\u201d, Proceedings of the Annual Research Symposium-Faculty of general studies, University of Kelaniya.<\/li><li>Rao S.V.D Nageswara (1997),\u201d Impact of Macroeconomic events on stock price behaviour\u201d, Management and Accounting Research, Vol 1, No 1, pp 46-47<\/li><li>Shaveta Gupta, Balram Dogra, A K Vashisht, Shevata Ghai (2012),\u201d Stock price reaction to dividend announcement\u201d, International journal of financial management, Vol.02, Issue 02 pp 23-31<\/li><li>Singh, Gurcharan, and Kansal, S. (2010). \u201cImpact of Union Budget on Indian Stock market-A case study of NSE\u201d, AsiaPacific Journal of Social Sciences, Vol. 2, No. 1, pp. 148-160<\/li><li>Singhvi, Abha (2014). Impact of Union Budget on NIFTY. Pacific Business Review International, Volume 6, Issue 12.<\/li><li>Soni, Anil and Jalandhar. (2010). \u201cReaction of the stock market to Union Budget and Monetary policy announcements\u201d, APJRBM, Vol. 1, No. 2, pp. 155-175.<\/li><li>Thomas, Susan and Shah, Ajay (2002), \u201cThe stock market response to the Union Budget\u201d, Economic and Political Weekly, Vol.XXXVII, Issue 5 pp 455\u2013458<\/li><li>Varadharajan and Vikkraman (2011). Impact of Pre and Post Budget on stock market volatility between 2001 to 2011. Journal of contemporary research in management.<\/li><li><a href=\"https:\/\/www.financialexpress.com\/market\/budget-2020-share-market-live-updates-impact-of-budget-2020-on-stock-market\/1842590\/\">https:\/\/www.financialexpress.com\/market\/budget-2020-share-market-live-updates-impact-of-budget-2020-on-<\/a><a href=\"https:\/\/www.financialexpress.com\/market\/budget-2020-share-market-live-updates-impact-of-budget-2020-on-stock-market\/1842590\/\">stock-market\/1842590\/<\/a><\/li><li>https<a href=\"http:\/\/www.business-standard.com\/budget\/article\/budget-2020-selling-pressurThe\">:\/\/www.<\/a>bus<a href=\"http:\/\/www.business-standard.com\/budget\/article\/budget-2020-selling-pressurThe\">iness-standard.com\/budget\/article\/budget-2020-selling-pressurThe <\/a>drop down in the shares can be used as a weapon e-on-stock-market-may-continue-say-experts-120020300034_1.html<\/li><li><a href=\"https:\/\/www.valueresearchonline.com\/stories\/12465\/significance-of-beta\">https:\/\/www.valueresearchonline.com\/stories\/12465\/significance-of-beta<\/a><\/li><\/ol>                    <\/div>\n\t\t        \n                    <div id=\"citation-tab\" class=\"clearfix eael-tab-content-item inactive\" data-title-link=\"citation-tab\">\n\t\t\t\t        <p>Srivastava, Maheshwari , Singh , &amp; 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\u201372. https:\/\/doi.org\/10.61691\/IPEM_Mgmt.18.2024.65-72<\/p>                    <\/div>\n\t\t                    <\/div>\n        <\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>An Empirical Analysis of the Effect of Union Budget Announcements on Indian Stock Market Returns Dr. Purwa Srivastava , Dr. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-3627","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/journal.ipem.edu.in\/management\/wp-json\/wp\/v2\/pages\/3627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/journal.ipem.edu.in\/management\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/journal.ipem.edu.in\/management\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/journal.ipem.edu.in\/management\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/journal.ipem.edu.in\/management\/wp-json\/wp\/v2\/comments?post=3627"}],"version-history":[{"count":5,"href":"https:\/\/journal.ipem.edu.in\/management\/wp-json\/wp\/v2\/pages\/3627\/revisions"}],"predecessor-version":[{"id":3942,"href":"https:\/\/journal.ipem.edu.in\/management\/wp-json\/wp\/v2\/pages\/3627\/revisions\/3942"}],"wp:attachment":[{"href":"https:\/\/journal.ipem.edu.in\/management\/wp-json\/wp\/v2\/media?parent=3627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}