Mumbai. The local stock market declined for the fourth consecutive trading session on Wednesday due to selling in financial and banking stocks and increase in securities transaction tax (STT) and short-term capital gains tax. The BSE benchmark index Sensex, based on 30 shares, closed at 80,148.88 points, down 280.16 points or 0.35 percent. During trading, at one time it slipped by 678.53 points to 79,750.51 points.
National Stock Exchange (NSE) index Nifty also closed at 24,413.50 points, falling by 65.55 points i.e. 0.27 percent.
Among the Sensex companies, Bajaj Finserv’s stock fell by 2% as its results were not as per expectations. Shares of Bajaj Finance, Hindustan Unilever, Kotak Mahindra Bank, Adani Ports, Axis Bank and State Bank of India also closed with a decline. On the contrary, shares of Tech Mahindra, ITC, NTPC, Tata Motors and Sun Pharma closed with gains. ITC shares reached a 52-week high after the announcement of no new tax on tobacco products in the budget.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The budget has passed with mixed sentiments. The change in capital gains tax has come out as the only short-term negative surprise. The broader market seems to be losing its momentum due to the lack of a guiding factor for further momentum.” Prashant Tapse, Senior Vice President (Research), Mehta Equities Limited, said, “Profit booking continued as investors reduced their stake in banking and automotive stocks, leading to a decline in major benchmark indices …” Analysts say that the first quarter results of companies will determine the near future trend.
Deepak Jasani, Head (Retail-Research), HDFC Securities, said, “On Wednesday, the Nifty fell for the fourth consecutive session and it was its worst phase since May 2024.” In the broader market, the BSE Smallcap index rose 1.91 percent and Midcap rose 0.68 percent. In other Asian markets, South Korea’s Kospi, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng closed with a decline.
European markets were also trading with a decline. US markets recorded a slight loss on Tuesday. According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 2,975.31 crore on Tuesday.
International oil benchmark Brent crude jumped 0.75 per cent to USD 81.62 per barrel.
With the presentation of the budget for the financial year 2024-25 on Tuesday, the market witnessed extreme volatility. After the proposal to increase STT on futures and options deals was made, the Sensex fell by 1,277.76 points or 1.58 percent. However, later it was able to recover its losses to a great extent. On Tuesday, the Sensex closed with a slight decline of 73.04 points at 80,429.04 points and the Nifty closed 30.20 points lower at 24,479.05 points.