Budget Day is special not for just the economists, but also for traders, as any announcement can move markets. Volatility is expected and trading volumes usually rise. If the market moves one way and you have taken a favourable position, you can make big gains or vice versa.
Ankush Bajaj, a trader from Raipur, Chhattisgarh, shares his experience trading on Budget Day. Edited excerpts:
From your experience, how difficult is it to trade on a Budget Day? What kind of challenges do you face?
The Union Budget has always been a major event for the Indian financial markets. Budget day is usually synonymous with market volatility. The market generally remains turbulent before and after Budget day as well.
Traders face major challenges while the Budget speech is in progress. They can expect a swift up movement or a fast fall. One bit of good news can see the markets jump 30-50 points and one bit of bad news can take it down 50-100 points. The direction of the markets on budget day cannot be predicted even by the experts. As the markets move very quickly, trading gets harder.