Sensex, Nifty settle marginally down in volatile trade on eventful Budget day

Mumbai, 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 per cent at 80,429.04. 

The index gyrated between highs and lows during the day as Union Finance Minister Nirmala Sitharaman announced budget proposals for 2024-25. 

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 per cent to 24,479.05. Intra-day, it dropped 435.05 points or 1.77 per cent to 24,074.20. Among the Sensex pack, Titan jumped over 6 per cent, followed by ITC which surged more than 5 per cent.

Adani Ports, NTPC, Infosys, Hindustan Unilever, HCL Technologies and Sun Pharma were among the other big gainers.

However, Larsen & Toubro, Bajaj Finance, State Bank of India, Axis Bank and HDFC Bank were among the major laggards.

Sitharaman on Tuesday announced income tax relief for the middle class, a Rs 2 lakh crore outlay for job creation schemes over the next five years and a spending splurge for states run by her party’s new coalition partners as she unveiled Modi 3.0 government’s first budget after the general election.

With rural distress and unemployment being blamed for the BJP losing its majority, Sitharaman in her seventh straight budget provided Rs 2.66 lakh crore for rural development and maintained spending on long-term infrastructure projects at Rs 11.11 lakh crore to boost economic growth.

The finance minister said the government plans to raise the capital gains exemption limit on certain financial assets to Rs 1.25 lakh per year for the middle and upper middle class.