Nifty | Nifty :On Budget 2024 Day, the stock market saw Nifty 50 and Sensex bouncing back from a tax setback to finish nearly unchanged.
Nifty :On Budget 2024 Day
Budget 2024: With the significant turnaround of market indicators from their lowest point of the day, it can be stated that the Indian stock market largely dismissed worries about an increase in capital gains taxes. The main indices, the Sensex and the Nifty 50, ended the day nearly unchanged on Tuesday, July 23.
The Indian stock market indexes dropped by almost 2 percent as a quick response to Finance Minister Nirmala Sitharaman’s increase in the Security Transactions Tax (STT), long-term capital gains tax (LTCG), and short-term capital gains tax (STCG) during the session.
After FM’s statements on capital gains taxes, Sensex dropped by 1,278 points, equivalent to 1.6%, to reach 79,224.32. Meanwhile, the Nifty 50 experienced a 1.8% decrease by plunging 435 points to 24,074.20 during Tuesday’s session.
Despite experiencing some losses, the main indices bounced back with the Sensex finishing 73 points (0.09%) lower at 80,429.04, and the Nifty 50 dropping 30 points (0.12%) to 24,479.05.
Mid and smallcap indices did not perform as well as benchmarks. The BSE Midcap index decreased by 0.74%, while the Smallcap index finished 0.18% down.
HDFC Bank, Larsen & Toubro, Reliance Industries, and ICICI Bank’s stocks were the main reasons for the Nifty 50 index’s decline. Conversely, ITC, Titan, Infosys, and NTPC stocks were the primary drivers of the index’s performance.
Higher taxes will temporarily slow down economic growth.
Experts noted that the Budget adhered closely to expectations and steered clear of populism. The fiscal deficit goal was revised to 4.9 percent of GDP, considerably below the 5.1 percent stated in the Interim Budget.
