Last Updated on 24/07/2024 by wccexam Desk
After the budget, the stock market started off slowly on Wednesday. The Sensex slipped by more than 100 points, while the Nifty started trading by slipping by more than 30 points. Earlier on Tuesday, the Modi 3.0 budget was presented in the Parliament. Finance Minister Nirmala Sitharaman made several announcements while presenting the seventh consecutive budget of her tenure and their direct impact was also seen on the stock market. The decision to increase the capital gains tax spoiled the mood of the market and it scared the investors a lot. The BSE Sensex slipped by 1200 points, while the NSE Nifty slipped by 500 points. However, by the end of trading, there was a sharp recovery in both.
Sometimes Sensex is in red zone and sometimes in green zone
There was a lot of turmoil in the stock market yesterday and even today the market seems to be playing hide and seek with the investors. On Wednesday, both the stock market indexes opened in the red. BSE Sensex opened at the level of 80,343.28, showing a slight decline compared to its previous close of 80429.04. On the other hand, NSE Nifty opened at the level of 24,444, showing a slight decline compared to its previous close of 24,479. However, on Wednesday also the movement of Sensex-Nifty seems to be changing. In a few minutes they are in the green zone, and the next moment they are again seen trading in the red zone.
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The impact of the increase in capital gains tax on the market does not seem to be reducing, as of 10.48 am, the Sensex was trading 200 points down at the level of 80,250, while the Nifty was trading 45 points down at 24,435.
Sensex fell by 1200 points yesterday
On the day of the budget, Tuesday, the stock market witnessed a lot of turmoil. Before the presentation of the budget, the 30-share Sensex of the Bombay Stock Exchange (BSE) opened with a decline on Tuesday. Sensex started trading at the level of 80,408.90, falling by about 200 points and when the Finance Minister started her budget speech (Nirmala Sitharaman Budget Speech) in Parliament, the initial decline turned into a rise, but it did not last long. There came a time when the Finance Minister started talking about tax and announced an increase in capital gains tax, then the market crashed.
Actually, the government has increased the long term capital gains tax to 12.5 percent, while in the short term this tax has been increased to 20 percent on some assets. Immediately after this announcement, the stock market changed its stance and the Sensex fell by 1200 points to 79,224.32. Like the Sensex, the National Stock Exchange’s Nifty index (Nifty-50) also suddenly slipped by 500 points after the announcement regarding capital gains tax.
Sharp recovery at the end of trading
However, after the budget speech was over, a sharp recovery was also seen in the stock market. After slipping by 1200 points, the BSE Sensex finally closed with a marginal decline of just 73.04 points at 80,429.04. At the same time, NSE Nifty also recovered from the decline and finally closed at 24,479.05, slipping 30.20 points.
692 stocks fell
As soon as the trading started in the stock market, 1528 stocks were seen in the green zone, while 692 stocks started trading in the red zone with a decline. No change was seen in 128 stocks. ITC, Titan, HDFC Life, BPCL and Wipro were seeing a rise, while Bajaj Finance, Tata Consumer, Britannia Industries, Bajaj Finserv and Nestle India were trading with a decline.
(Note- Before making any investment in the stock market, please consult your market experts.)