1Pro-Vice-Chancellor, Maulana Azad National Urdu University, (A Central University), Hyderabad, Email: shakeel_du@yahoo.co.in
2Professor & Additional Director, DDE, Maulana Azad National Urdu University, (A Central University), Hyderabad
3Former Vice Chancellor, Telangana University
4Former Dean & HOD, Department of Commerce, Osmania University, Telangana. Email: maakhan1155@gmail.com
Online published on 4 November, 2017.
The budget is annual financial statement containing the estimated receipts expenditure of the firms, industry or a country. A budget is a powerful tool in the hand of the government to control the economic resource of the country. The objectives of the study is to analyze the effect of announcement of budget on NIFTY returns in the pre-budget and post-budget period& analyze and compare the volatility i.e. variance of daily returns in the stock market for short term (3 days), medium term (15 days) & long term (30 days) in pre-budget and post-budget period. The daily closing prices of NIFTY & SENSEX index have been collected from the yahoo finance website for a period from 2010 to 2016. Statistical tools like variance, standard deviation, t test and f tests are used to for to analyze the data. From the analysis it is observed that the budget has more effect in short term, less in medium term and it diminishes in the long term after the budget announcement.
Budget, nifty, sensex, returns, t test, f test
