Stock markets update: The recent budget announcement to increase the short-term capital gains tax on share sales from 15 per cent to 20 per cent and the long-term capital gains tax from 10 per cent to 12.5 per cent is still evident in the stock market today. After closing in the red on budget day, the market opened weak again on Wednesday.
In the early trade, the 30-share BSE Sensex fell 117.20 points to 80,311.84 points. Similarly, the NSE Nifty declined by 35.75 points to reach 24,443.30 points. Meanwhile, market experts indicated that if the market continues to weaken, a significant decline could occur.
Among the sectoral stocks Bank, Auto, Financial Services, IT, Pharma, Private Bank, Realty, and Healthcare traded in red during the initial hours of the trade. On the other hand the sectoral stocks of FMCG, Media, Metal, PSU Bank, Consumer Durables, Oil and Gas traded in red. The stock market experienced significant volatility during the announcements of the Union Budget on Tuesday. Following the presentation of the Union Budget 2024, domestic indices closed marginally down on the last day.
Rupee against dollar
Meanwhile, the rupee was trading in a narrow range and fell 1 paisa to 83.70 against the US dollar in early trade on Wednesday, weighed down by a weak risk appetite and dollar demand from importers. Forex traders said the increase in capital gains tax and removal of indexation benefits announced in the FY25 Budget on Tuesday was the main reason for dollar buying as foreign investors sold stocks. At the interbank foreign exchange market, the local unit opened at 83.69, and touched an early low of 83.70, registering a fall of 1 paisa from its previous close.
(With inputs from agencies)
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