union budget impact – Artifex.News https://artifexnews.net Stay Connected. Stay Informed. Thu, 25 Jul 2024 05:23:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://artifexnews.net/wp-content/uploads/2023/08/cropped-Artifex-Round-32x32.png union budget impact – Artifex.News https://artifexnews.net 32 32 Sensex, Nifty tumble in early trade on weak global cues https://artifexnews.net/article68444172-ece/ Thu, 25 Jul 2024 05:23:50 +0000 https://artifexnews.net/article68444172-ece/ Read More “Sensex, Nifty tumble in early trade on weak global cues” »

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The announcement of a hike in securities transaction tax and short term capital gains tax in the Budget for 2024-25, impacted markets’ sentiment negatively during the initial trade on July 25, 2024.

Equity market benchmark indices Sensex and Nifty tumbled in early trade on July 25, continuing to decline for the fifth day running, dragged by Axis Bank and overall bearish global market trends.

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.

Also Read: Markets still sour after tax hike on equity investments, Nifty, Sensex fall marginally

The 30-share BSE Sensex tanked 671 points to 79,477.83. The NSE Nifty tumbled 202.7 points to 24,210.80.

From the Sensex pack, Axis Bank declined nearly 6% 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 U.S. markets ended significantly lower on July 24.

“Global cues have turned distinctly negative with a sharp 3.64% cut in Nasdaq, which is the worst cut in 2024. The tech stocks which have been driving the rally in the U.S. are facing the brunt of selling due to worse-than-expected results and news.

“In India, too, the sentiments have turned a bit negative on the Budget proposals to raise the capital gains tax,” said V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹ 5,130.90 crore on July 25, according to exchange data.

Global oil benchmark Brent crude declined 0.76 % to USD 81.09 a barrel.

The BSE benchmark declined 280.16 points or 0.35 % to settle at 80,148.88 on July 24. The NSE Nifty dropped 65.55 points or 0.27 % to 24,413.50.



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Union Budget 2024: Stock Markets still sour after tax hike on equity investments, Nifty, Sensex fall marginally https://artifexnews.net/article68440175-ece/ Wed, 24 Jul 2024 04:42:14 +0000 https://artifexnews.net/article68440175-ece/ Read More “Union Budget 2024: Stock Markets still sour after tax hike on equity investments, Nifty, Sensex fall marginally” »

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People walk past a display screen telecasting the Union Budget 2024-25 presentation by Union Finance Minister Nirmala Sitharaman at the Parliament House, outside the BSE in Mumbai on July 23, 2024.
| Photo Credit: ANI

Indian benchmarks were little changed on July 24, with sentiment still sour a day after the government raised the tax on gains from equity investments.

The NSE Nifty 50 fell 0.09% to 24,456.6 as of 9:33 a.m. IST, while the S&P BSE Sensex shed 0.09% to 80,355.57. The broader, more domestically focussed small- and mid-caps were little changed.

“The Union Budget has presented short-term challenges for the markets,” said Pranav Haridasan, managing director and chief executive at Axis Securities. “The rise in capital gains tax rates and the increased tax on derivatives trading are a short-term negative.”

The blue-chips slipped 1.6% on July 23 after the government hiked the tax rate on equity derivatives trades and on profit from equity investments. A jump in consumer stocks helped the indexes recover to end with relatively lower losses. Eight of the 13 major sectors logged losses on the day.

Among individual stocks, cigarette maker ITC gained 3%, adding to their 5.5% jump on July 23 after the government did not raise tobacco taxes. Jeweller Titan rose 2%, adding to its 6.5% jump on the day after the government chopped the customs duty on gold and silver to 6% from 15%.

“We believe the reduction in customs duty is positive for consumer demand. Titan remains the clear market leader and a reduction in customs duty should be a positive catalyst,” said Aditya Soman and Vatsal Dujari, analysts at CLSA.

ITC and Titan were the top Nifty 50 gainers.

Hindustan Unilever lost 2.5% after the consumer good maker’s first-quarter results showed a “slight pick-up, but still a long road ahead”, according to Ambit Capital. Analysts also flagged the stock’s high valuation.



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