A Pragmatic Study of Budget Announcements & Stock Market Performance : India, US & UK Panorama

The stock market behaviour and trend can be move according to the different internal, external, micro economic and macro economic factors. The impact of some events that definitely occurs can't be envisaged by the stock market with confidence due to their nature. A budget is an influential instrument in the hands of the Government to control the fiscal resources of country. The Government Budget announcement is one of the important factors as it is related to the financial or economic health of country involving all the industries. The study considered the stock market behaviour on pre and post announcements of Govt. budgets (India: Union Budget, US: Federal Budget and UK Govt. Budget) covering the period of study F.Y. 2008-09 to 2010-11. For analysis only trading days have been taken into consideration and different statistical measures applied