Similar to the Union budget, announcement of the Indian railway budget too is known to have a positive or negative effect on the Indian Stock market.
On 8 July, Railway Minister Sadananda Gowda presented the rail budget. In tune with it, the Indian stock indices traded lower after surging for a few hours. The Sensex opened higher by 66.84 points at 26166.92, while Nifty also hit higher by 14.45 points at 7804.05 points during opening session. But, the index recorded its biggest single day fall in over 10 months during closing hours.
In the past too, budgets have had an impact on Indian stocks. The table below represents the history of Indian rail budgets from 2006, which had a direct impact on the value of Indian stock indices on that particular day:
|Year||Date||Rail Budget by:||Sensex Closing||Nifty Closing|
|Feb-2006||24||Lalu Prasad Yadav||10201(-43)||3050(-12)|
|Feb-2007||26||Lalu Prasad Yadav||13650(+16)||3942(+3)|
|Feb-2008||26||Lalu Prasad Yadav||17806(+155)||5270(+69)|