Chandigarh, July 23
Benchmark Sensex and Nifty settled marginally lower in volatile trade on Tuesday as the government proposed to hike securities transaction tax on futures & options in the budget for 2024-25.
Recovering most of its intra-day losses of over 1,200 points, the 30-share BSE Sensex settled lower by 73.04 points or 0.09% 80,429.04.
The barometer tanked 1,277.76 points or 1.58 per cent to hit a low of 79,224.32 as the minister announced a hike in STT on F&O trade and an increase in long-term capital gains tax on equities. However, tax exemptions and customs duty cuts helped boost consumer durables and FMCG shares, aiding stocks to recover from the day’s lows.
The NSE Nifty dipped 30.20 points or 0.12% to 24,479.05.
“From the markets perspective the raising of Short-Term Capital Gains Tax to 20% and Long Term Capital Gains Tax to 12.5% is a body blow. We need to brace ourselves for a negative reaction in the short term,” Sanjay Sinha, Founder, Citrus Advisors, said.
Unlock Exclusive Insights with The Tribune Premium
Take your experience further with Premium access.
Thought-provoking Opinions, Expert Analysis, In-depth Insights and other Member Only Benefits
Already a Member? Sign In Now