Stock markets opened in red on the second consecutive day after the presentation of the Union Budget on July 23. The equity benchmark indices declined in early trade on Thursday amid weak global cues and unabated foreign fund outflows. The 30-share BSE Sensex fell 671 points to 79,477.83. Meanwhile, the Nifty declined 202.7 points to 24,210.80 points.
The announcement of a hike in securities transaction tax and short-term capital gains tax in the Budget for 2024-25, heavy foreign fund outflows and profit-taking after a record rally also impacted markets' sentiment negatively during the initial trade.
From the Sensex pack, Axis Bank declined nearly 6 per cent after the company's June quarter earnings failed to cheer investors. JSW Steel, Tata Steel, ICICI Bank, Power Grid, UltraTech Cement and Titan were the other laggards. Tata Motors, Larsen & Toubro, HDFC Bank and Kotak Mahindra Bank were the gainers.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading lower. The US markets ended significantly lower on Wednesday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,130.90 crore on Wednesday, according to exchange data. Global oil benchmark Brent crude declined 0.76 per cent to USD 81.09 a barrel.
Rupee against dollar
Meanwhile, Rupee opened on a muted note and fell to an all-time low of 83.72 against the US dollar on Thursday, dragged down by the strength of the American currency in the overseas market and significant foreign fund outflows. Forex traders said the fall in the domestic unit came on the heels of a significant downturn in the Indian equity markets, sparked by the government's decision to hike the tax rate on capital gains. At the interbank foreign exchange market, the local unit was trading in a narrow range. It opened at an all-time low of 83.72 against the American currency, registering a fall of 1 paisa from its previous close.
(With inputs from PTI)
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