The Sensex did not witness any major upheaval in 2002. The Sensex opened on a subdued note on January 1, 2003, and ended the day with a marginal gain of 12.84 points at 3,390. Throughout the month the undertone of the market remained cautious amid fears of an US-Iraq war.

Finance Minister Jaswant Singh's maiden Budget on February 28, 2003 was seen to boost the market sentiment.

While the tech stocks rose on Singh's announcement that full tax breaks would be restored on profits from software exports, the market did not greet the Union Budget (2003-04) with too much enthusiasm and the Sensex closed with a paltry gain of six points.

While there was disappointment for public sector banks and the power sector, the overall Budget was hailed as positive, investor-friendly and growth-oriented by the corporate.

Investors particularly welcomed the abolition of dividend tax and long-term capital gains tax.

(Finance Minister Jaswant Singh).