Indian markets have not sustained pre-Budget rallies in the past

Market expectations from the Union Budget hold a key in determining how stocks could fare post the budget, an analysis by Morgan Stanley shows.
 
The study says whenever the market has high expectations—measured pre-budget performance of benchmark indices—the post-budget returns often disappoint. When expectations are low, the markets tend to do well post the budget.
 
In the 27 years, whenever the market has gone up before the budget, it has declined 3 out of 4 times a month after the announcement. Similarly, whenever the Indian market has outperformed the emerging markets (EMs) before the budget, it has underperformed