Flat closing in volatile session on Budget day
BSE Sensex tumbles over 1,200pts after FM announced a hike in STT on F&O trade, long-term capital gains tax on equities; FMCG, consumer durables cap losses
image for illustrative purpose
Precarious Trading:
- BSE Sensex settled lower by 73.04 pts or 0.09% to 80,429.04
- Sensex tanked 1,277.76 pts or 1.58% to hit a low of 79,224.32 at 12:30pm
- NSE Nifty dipped 30.20 pts or 0.12% to 24,479.05
- Intra-day, Nifty dropped 435.05 pts or 1.77% to 24,074.20
- FIIs bought equities worth Rs3,444.06 cr on Mon
Budget Day Fluctuations:
- Nifty fell 45.85 pts or 0.26% in 2023
- It surged 237 pts or 1.37% in 2022
- Nifty soared 646.60 pts or 4.74% in 2021
- It pluged 300.25 pts in 2020
- Nifty jumped 62.70pts on Feb 1, 2019
Mumbai: Benchmark Sensex and Nifty settled marginally lower in volatile trade on Tuesday as the government proposed to hike securities transaction tax on futures & options in the budget for 2024-25.
Recovering most of its intra-day losses of over 1,200 points, the 30-share BSE Sensex settled lower by 73.04 points or 0.09 per cent 80,429.04. The NSE Nifty dipped 30.20 points or 0.12 per cent to 24,479.05. Intra-day, it dropped 435.05 points or 1.77 per cent to 24,074.20.
The index gyrated between highs and lows during the day as Finance Minister Nirmala Sitharaman announced budget proposals for 2024-25. The barometer tanked 1,277.76 points or 1.58 per cent to hit a low of 79,224.32 as the minister announced a hike in STT on F&O trade and an increase in long-term capital gains tax on equities. However, tax exemptions and customs duty cuts helped boost consumer durables and FMCG shares, aiding stocks to recover from the day’s lows. Among the Sensex pack, Titan jumped over 6 per cent, followed by ITC which surged more than 5 per cent.
Adani Ports, NTPC, Infosys, Hindustan Unilever, HCL Technologies and Sun Pharma were among the other big gainers. However, Larsen & Toubro, Bajaj Finance, State Bank of India, Axis Bank and HDFC Bank were amonh the major laggards. “From the markets perspective the raising of STCG (Short-Term Capital Gains Tax) to 20% and LTCG (Long Term Capital Gains Tax) to 12.5% is a body blow. We need to brace ourselves for a negative reaction in the short term,” added Sanjay Sinha, Founder, Citrus Advisors.
“There was a knee-jerk reaction during the Budget speech as Sensex plunged more than 1,000 points after FM increased LTCG and STCG rates along with higher STT on F&O transactions, which had caught investors off guard.” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
