Stock Market: The Sensex plummeted 1,266.17 points to 79,235.91 following the Finance Minister's hike in Securities Transaction Tax (STT) on Futures and Options (F&O). The Nifty also dropped sharply, tumbling 435.05 points to 24,074.20.
The stock market rebounded as Finance Minister Nirmala Sitharaman's budget speech began. The Sensex was trading at 80,701.87, up by 199.79 points, while the Nifty was at 24,550.95, showing a gain of 41.70 points. Earlier, the Sensex dropped by 165.65 points to 80,336.43, while the Nifty fell by 58.05 points, trading at 24,451.20 ahead of the budget presentation by Finance Minister Nirmala Sitharaman.
On the day of the budget, the Indian stock market started on a positive note. The BSE Sensex opened at 80,724.30 points, marking an increase of 222.22 points, while the NSE Nifty rose by 63.90 points to 24,573.15 points. Key sectors such as banking, metal, power, and FMCG are experiencing notable growth.
Among the Sensex pack, UltraTech Cement, Mahindra & Mahindra, ITC, Larsen & Toubro and NTPC were the biggest gainers. HCL Tech, Power Grid, JSW Steel and Tata Steel were among the laggards. However, later, both the benchmark indices faced heavy volatile trends and were trading flat.
What to do if you are a trader?
Shrikant Chauhan, Head of Equity Research, Kotak Securities said that expects volatility in the market on the budget day. The level of 24500/80400 is an important support for the bulls. At the same time, 24850/81600 will act as resistance. If the index falls below 24500/80500, there will be a further decline. As long as the market is trading below 24850/81600, it is advisable to reduce long positions during rallies. From the mid and long term perspective, buying is recommended only at key support levels (24150/79500 and 24000/79000). If the market crosses 24850/81600, it has the potential to move towards 25000/82000 and 25300/83000 levels.
"The market participants will be closely watching for any tweaks in LTCGs tax. If there are no changes in LTCGs tax that will be a big relief for the market and the market is likely to react positively to that. Stock-specific reactions will depend on the Budget proposals for specific sectors," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Market closed in red on Monday
On Monday, the day before the budget presentation, the stock market ended lower due to significant selling pressure in shares of Reliance Industries and Kotak Mahindra Bank. The 30-share BSE Sensex closed down by 102.57 points at 80,502.08, while the NSE Nifty fell by 21.65 points to 24,509.25. This marked the second consecutive session of declines, following a drop in both indices on Friday as well.
Also Read: Budget 2024: How stock market has performed on Budget day in last 10 years? | Know here
