ANALYZING THE RESPONSES OF DEFENSE SECTOR STOCKS TO INTERIM UNION BUDGET ANNOUNCEMENT 2024: AN EVENT STUDY

Tanmay Goyal

doi:10.55955/330004

Authors

Mr. Tanmay Goyal J.C. Bose University of Science & Technology, YMCA https://orcid.org/0009-0006-1220-204X

DOI:

https://doi.org/10.55955/330004

Keywords:

Budget , Interim, Defence , Event , Returns, Announcement, Nifty india, T test

Abstract

The interim union budget, the government's primary economic policy document, outlines the intended use of public funds to achieve policy objectives. Industries look forward to it as it can lead to significant changes, and stock markets also react to budget releases to some extent. The paper examines how the NSE's Defense Stocks are affected by the Interim Union Budget. The data was accumulated between 2023 and 2024 from the authorized NSE website. The impact is measured in terms of daily average returns in the pre-and post-budget periods of the top five contributors to the Nifty India Defense index. The statistical tools used include regression analysis and a one-sample t-test. The study found that the impact on defense sector stocks was attributed to factors other than budget announcements. This paper suggests that investors should not consider budget announcements as significant events and should focus on other market factors as well for trading and investing.

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