The Indian stock market indices, Sensex and Nifty, continued their downward trend following the Union Budget 2024 announcement. The decline was driven by Finance Minister Nirmala Sitharaman’s proposal to increase the securities transaction tax (STT) on futures and options, along with negative global market trends and foreign fund outflows. This combination of factors has further dampened sentiment in domestic markets.
Expert Opinions on the Market Downturn
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the current market scenario, emphasizing the importance of selecting stocks with strong return potential. He noted, “With the steep increase in STCGs tax and a marginal increase in LTCGs tax on equity now a reality, investors should focus on investing in stocks that can deliver superior returns. FMCG stocks, particularly ITC and United Spirits, appear attractive from a valuation perspective.”
Vijayakumar also highlighted that despite the market’s short-term reactions, the Budget reinforces the India Growth Story with a focus on growth and financial stability.
Market Performance and Key Movers
Among the major players in the Sensex pack, Hindustan Unilever saw a 3% drop after reporting a modest 2.2% rise in consolidated net profit at ₹2,612 crore for Q1 FY25, influenced by price reductions. Other notable laggards included Bajaj Finance, Nestle, HCL Technologies, UltraTech Cement, Mahindra & Mahindra, and Adani Ports.
However, there were some gainers as well, with ITC, Tata Motors, Tech Mahindra, and NTPC showing positive movement.
Closing Numbers
The key benchmark indices experienced a volatile trading session on Tuesday, ending marginally lower. The BSE benchmark Sensex closed down by 73.04 points, or 0.09%, at 80,429.04. The Nifty index dipped 30.20 points, or 0.12%, to close at 24,479.05.
As investors navigate these changes, it’s essential to consider the broader implications of the Union Budget 2024 and its potential impact on the market. For continued updates and in-depth analysis, keep following Mumbai Uncensored News.
