Mkts Approach Budget With Ample, Justified Caution

Median returns for all but two sectors have been negative in the month before budget

- Abhinaba Saha

MUMBAI: The Union budget, the annual unveiling of India's fiscal roadmap, is always met with a flurry of anticipation. Yet, despite widespread excitement, markets approach the event with tempered expectations. That caution is often justified.

The median returns for all but two sectors have been negative in the month preceding the budget, revealed a Mint analysis of 17 key sectoral indices on the BSE over the past 20 budgets (including interim budgets in election years).

Real estate suffered the most, with a near 6% median decline during the period.

The oil and gas, and power sectors fell 4.3% each. And the pre-budget market downturn is frequently reflected in wider market performance.