Budget 2019: Expected impact on Stock Markets

Budget 2019: The BSE Sensex plunged by 463.28 points while rupee fell by 44 paise against the US dollar, when Finance Minister Arun Jaitley opened his Red Budget Box to present his fifth budget speech in 2018.

Budget 2019: Interim Budget 2019 may not have a significant impact on the Stock Markets. (PTI)

Budget 2019: Interim Budget 2019 may not have a significant impact on the Stock Markets as compared to last year, when bourses were sent into a tizzy after Long-Term Capital Gain aka LTCG tax of 10% on equity investment above Rs 1 lakh was announced. The BSE Sensex plunged by 463.28 points while rupee fell by 44 paise against the US dollar, when Finance Minister Arun Jaitley opened his Red Budget Box to present his fifth budget speech in 2018. However, it seems things will be different as far as Interim Budget 2019 is concerned as the bulls and bears will already discount the worst and prepare for what would be coming at the stock and currency markets next month. Investors are already playing their cards cautiously and trading sideways with a negative bias. The market seems to have already factored the political uncertainty till general elections 2019 and is prepared to buy good stocks in the event of a decline and build strong portfolios by the time a new government assumes centre. Furthermore, unlike Budget 2018, Interim Budget 2019 will not be a full fledged budget, and will only be restricted to approval for the outgoing government’s estimated expenditure for the last few months. But, a positive pitch for the markets cannot be ruled out by the Finance Minister. Commodity experts are of the view that in case the government announces any plans for Gold monetisation scheme or sovereign gold bond scheme or development of gold bullion exchanges then it can send an upsurge wave in the market that’ll have a ripple effect on banking sector too.