VJB 2.1.6 – VLEARNY

ANALYZING STOCK MARKET VOLATILITY DURING UNION BUDGET SESSION 2024 – A STUDY OF SECTORAL NSE INDICES

*Govindaraj G

HOD of Commerce, Gupta College, Bangalore, Karnataka, ORCID Number: 0009-0003-5623-931X, Email ID: govindarajg17@gmail.com

Abstract

This research paper explores the impact of the Union budget 2024 announcement on stock market volatility across ten sectoral indices of the National Stock Exchange (NSE). The research focuses on stock market fluctuations during the pre-budget, on-budget, and post-budget phases to understand sector specific responses using the primary statistical method Analysis of Variance (ANOVA), the research analyzes the differences between opening and closing prices of these indices of NIFTY Auto, Bank, Commodity, Energy, Financial services, Healthcare, India Manufacturing, oil & Gas, Pharma, and services.

The outcomes of this paper indicate significant volatility across the three phases, with clear differences between sector specific variations. For instance, the Energy and services sectors displayed mixed responses, emphasizing the diverse market reactions to budgetary announcements. In contrast, indices such as NIFTY Auto and Pharma recorded significant declines in the post-budget phase, reflecting concerns over unfavorable policies or market reassessment. Additionally, the NIFTY Financial services and Bank indices highlighted positive gains on budget day, driven by investor optimism surrounding fiscal policies favoring these sectors.

The study emphasizes the critical role of the Union budget in shaping market behavior, highlighting the importance of fiscal policies in driving short-term market trends. For investors, the finding underlines the need for strategic decision-making during budget sessions to navigate sensitive volatility. Policymakers, on the other hand, can leverage these insights to assess the broader economic impact of their measures. Furthermore, companies, particularly those in delicate sectors such as banking and pharma, are encouraged to manage market expectations proactively during budget announcements to minimize the risks.

Keywords: union budget, stock market volatility, NIFTY sectors, ANOVA.

Citation of this paper: G, G. (2025). Analyzing stock market volatility during union budget session 2024 – a study of sectoral NSE indices. VLEARNY Journal of Business, 2(1), 42–48. https://doi.org/10.5281/zenodo.14873973

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