Budget 2024 Stock Market Highlights, July 23: Sensex, Nifty end flat; LTCG, STCG rule hits sentiment

Budget 2024 Stock Market Highlights: Post the initial jitters after the LTCG and STCG tax rejig announcement, the benchmark Sensex recovered as much as 1200-odd points from its day's lows of 79,224

3:43 PM

'Nifty remained highly volatile on budget day as traders adjusted their positions in accordance with Budget'

The Nifty remained highly volatile on budget day as traders adjusted their positions in accordance with the budget announcements. On the daily chart, a hammer kind of pattern has formed. On the other hand, the RSI is emerging from the overbought zone with a bearish crossover. On the lower end, immediate support is placed at 24,400. Heavy call writing at 24,500 indicates that the selling pressure will remain prevalent in the market until Nifty decisively breaches above 24,500. On the lower end, a fall below 24,400 might trigger a correction towards 24,200/24,000.

 

Views by: Rupak De, senior technical analyst, LKP Securities

 

3:36 PM

Budget 2024: Broader markets settle in red; Nifty SmallCap slips nearly 0.90%

3:34 PM

Budget 2024: Titan top gainer, followed by ITC, Adani Ports

3:33 PM

Budget 2024: Nifty settles below 24,500

3:32 PM

Budget 2024: Sensex settles marginally lower, down 70 pts

3:27 PM

Budget 2024: Expert View

Anindya Banerjee, SVP, head of research, currency, commodity & interest rates at Kotak Securities:

 

--MCX Gold and Silver prices faced significant selling pressure following a reduction in basic customs duty from 10 per cent to 5 per cent, and a decrease in AIDC from 5 per cent to 1 per cent, resulting in a total import duty of 6 per cent. This move has led to a sharp decline in prices, with Gold down by Rs 4,000/10 grams and Silver plummeting by Rs 4,090/kg. 

 

--While cheaper prices may stimulate domestic demand in the medium term, short-term trends could be influenced by Federal Reserve policy decisions. There remains potential for further downside, given the unexpectedly high import duty cut.

 

 

3:22 PM

Budget 2024: Tata Elxsi inks MoU with Nidec Corporation

3:19 PM

Budget 2024: Expert View

Sandeep Chordia, COO, Kotak Securities:

 

--Overall budget continues the path of fiscal consolidation with revised target of 4.9 per cent of GDP for FY25 ( from earlier target of 5.1 per cent, aided by dividend from RBI and tax buoyancy) and 4.5 per cent for FY26 which is hugely positive. 

 

--Three proposals impacting capital market the most are , increase in capital gain tax, STT on F&O, and taxation on buyback of shares. 

 

--There is increase in Short term Capital Gain Tax from 15 per cent to 20 per cent and long term from 10 per cent to 12.5 per cent for all sale transactions effective from July 23, 2024. 

 

--Fine print also takes away indexation benefit on sale of property , gold and unlisted assets. STT on futures increases marginally from 0.0125 per cent to 0.02 per cent and on options from 0.0625 per cent to 0.1 per cent on premium. 

 

--Buyback of securities will now be taxed in the hands of shareholders similar to dividend and capital loss generated on buyback will be allowed to be set off against other capital gain.

3:14 PM

Viksit Bharat Budget 2024: This waste management stock has zoomed 17%

Shares of EMS hit a record high of Rs 790, as they zoomed 17.4 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes after the Finance Minister, Nirmala Sitaraman in Budget 2024-2025 speech said the government shall promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects. READ MORE

3:13 PM

Budget 2024: Expert View

Subahoo Chordia, head of real assets strategy at Edelweiss Alternatives;

 

--The government has maintained its allocation towards infrastructure sector at Rs 11.11 lakh crore (i.e. 3.4 per cent of GDP) and additional interest free loan of Rs  1.5 lakh crores to States will be a booster for the infrastructure segment.

--The budget has lent further emphasis to multiple infrastructure segments towards development of roads, airports etc. Further, industrial parks, to service over 100 cities and development of 12 specific industrial parks under national schemes is envisaged.

 

--The Government has lent further weight in its fight against climate change. The fiscal incentives for rooftop solar and pumped storage will enhance energy security and availability. Further indirect tax incentives towards renewable energy items and critical minerals such as lithium, copper bodes well for the segment.

 

--Overall the budget maintains its focus on long term growth and sustainability and is positive towards infrastructure segments

3:09 PM

Budget 2024: Expert View

Sachin Bajaj, EVP and chief investment officer, Max Life:

 

--The first Union Budget under the new government promises continuation of existing policies and priorities of macro stability, reforms, and overall development.

--The government has managed to maintain a healthy balance of providing resources for growth and development while adhering to the path of fiscal consolidation.

--On the back of higher dividends from the Reserve Bank of India and better tax collections, the government has targeted a fiscal deficit of 4.9 per cent versus 5.1 per cent in the interim Budget, which is a healthy reduction of 0.7 per cent from FY24.

--The focus of the Union Budget continues to maintain a superior quality of spending. In this Budget, the government has also set a focus on job creation and skilling as key agenda items for the year without impacting the capex spent that was announced in the interim budget.

3:09 PM

Budget 2024-24: Why India VIX surged up to 17% today; check reasons here

On Tuesday, the volatility indicator for Indian bourses, India VIX surged up to 17.52 per cent intraday. This came amidst heightened volatility witnessed after the Finance Nirmala Sitharaman concluded the Budget speech for the financial year 2024-25. READ MORE

3:06 PM

500% increase in long-term capital gains declarations before tax increase

The amount of long-term capital gains declared across all taxpayers surged multifold ahead of the tax increase declared on Tuesday. READ MORE

3:04 PM

Budget 2024-25 commits reforms to strengthen IBC, strengthen tribunals

The government will make “appropriate amendments” to the Insolvency and Bankruptcy Code (IBC) and bring in reforms to strengthen related tribunals, said Finance Minister Nirmala Sitharaman on Tuesday in her Budget 2024-25 speech. READ MORE

2:55 PM

Budget 2024: M&M Finance Q1FY25 net profit rises 45.4% YoY to Rs 513 crore

2:53 PM

Budget 2024: SRF announces Q1 results, profit slips nearly 30% to Rs 252 crore

2:46 PM

Budget 2024: Market recovers; Sensex, Nifty back in green

2:44 PM

Budget 2024: Expert View

Pranav Haridasan, MD & CEO, Axis Securities:

 

The Union Budget 2024-25 has presented short-term challenges for the markets. The rise in capital gains tax rates and the increased STT are a short term negative. The capital expenditure allocation, unchanged at Rs 11.1 lakh crore, fell short of the expected Rs 11.5-12 lakh crore. However, the budget does have its positives. The fiscal deficit has been reduced to 4.9 per cent, compared to 5.1 per cent in the interim budget, demonstrating a solid fiscal consolidation path. Additionally, the budget places a strong emphasis on welfare schemes, aiming to alleviate rural distress and support the rural economy. Despite the initial market reaction, the impact is expected to be temporary, with a return to normalcy anticipated soon.

 

2:41 PM

Budget 2024: Expert View

Badal Yagnik, Chief Executive Officer, Colliers India:

 

--The Union Budget 2024-25 clearly defines the nine priority areas revolving around employment & upskilling, inclusive growth, augmentation in manufacturing, urban development, infrastructure growth, innovation and newer reforms.

 

--This lays the foundation for future budgets and envisions India’s growth trajectory over the next five years. 

 

--The capital outlay of over Rs 11 lakh crore for infrastructure at 3.4 per cent of GDP will boost equitable real estate growth in Tier I and II cities.

 

--Housing continues to be one of the focus areas in the budgetary announcements. 

 

--Under the PMAY scheme, Rs 10 lakh crore has been allocated for the development of 3 crore additional houses. This will drive construction in the urban and rural areas with cascading effect on allied sectors. 

 

--PPP financing and VGF for rental housing will help in meeting the housing needs of the poor while reducing the burden of the government through the traditional route. 

 

--Rationalisation of stamp duty across states with an emphasis on women homebuyers will boost home-buyer sentiment across major cities of the country. 

 

 

2:37 PM

Union Budget 2024: Where does the govt get its money, where does it go?

Union Finance Minister Nirmala Sitharaman announced her seventh consecutive Budget on Tuesday, sticking to the path of fiscal consolidation. In her Budget speech, Sitharaman said the fiscal deficit is estimated at 4.9 per cent of the GDP for the current financial year. The government plans to reduce the fiscal deficit below 4.5 per cent in the coming year, aiming to maintain a declining trajectory of the fiscal deficit as a percentage of GDP. READ MORE

 

2:34 PM

Budget 2024: Expert View

Ashish Nanda, president and head of digital business at Kotak Securities:

 

--While STT has been increased on both Futures and Options from October 1, 2024, this is the same date when exchange turnover charges will be reduced.

--In my view the net impact of this will be largely net neutral for the customer. Example, STT on Options will increase by Rs 3.75 per Rs 10,000 round trip premium turnover while exchange turnover charges should reduce by approx Rs 3.50 to Rs 4.

 

2:31 PM

Realty indexation benefit gone, tax rate cut in Budget 2024. Stock strategy

The Nifty Realty index tanked over 4 per cent to a low of 1,043.85 on the NSE in Tuesday's intra-day deals dragged by aggressive selling pressure in its constituents after Budget 2024 did away with indexation benefit on gains from real-estate resale. READ MORE

2:26 PM

Budget 2024: Expert View

Arpit Jain, joint managing director, Arihant Capital Markets:

--The hike in securities transaction tax (STT) on F&O from 0.01 per cent to 0.02 per cent and long-term capital gains tax (LTCG) from 10 to 12.5 per cent is a negative for the investors. 

--The street expected a level playing field for domestic and foreign investors by taxing the gains from equities for foreign institutions. Instead, LTCG was hiked which disappointed the market players.  

--The reduction in fiscal deficit is estimated to be 4.9 per cent from 5.1 per cent, and the target of 4.5 per cent for the next year is very good for the Indian economy in the long run. 

--The 4.9 per cent fiscal deficit translates to the borrowing target coming down to Rs 1.4 lakh crore compared to the estimated Rs 15.43 lakh crore for FY24.

While there will be some disappointment, we don’t believe it will deter people from investing in Indian equities and the markets will normalise.

 

2:22 PM

Budget 2024: Expert View

V K Vijayakumar, chief investment strategy, Geojit Financial Services:

--The overarching theme of this Budget is fiscal consolidation and focus on employment generation. 

 

--The reduction in fiscal deficit target for FY25 from 5.1 per cent in the interim Budget to 4.9 per cent now reflects the government’s focus on growth with financial stability. 

 

--From the market perspective the Budget proposals with the intent of raising tax revenue from capital gains are slightly negative. 

 

--The increase in STCGs tax from 15 per cent to 20 per cent is sharp. The increase in LTCGs tax from 10 per cent to 12.5 per cent is only marginal particularly when seen from the perspective of raising the LTCGs tax exemption limit from Rs 1 lakh to Rs 1.25 lakh. 

 

--The taxation of share buy back income at the hands of the recipients also is a negative. The higher taxes on F&O was expected and this is being done to reduce the excessive speculative trades in the market.

 

--A major positive in the Budget is the proposal to abolish angel tax. This will be a big boost to the startup ecosystem.

 

2:21 PM

Budget 2024: Expert View

Satish Menon, executive director, Geojit Financial Services:

--The budget was anticipated to build upon the progressive measures outlined in the interim budget. 

 

--Key positives are new macro-initiative aimed at job creation, workforce skill development, improvements in agriculture, urban & rural housing, and higher funding the MSME sector, which should uplift the masses.

 

--Increase in capital gain tax is a negative surprise,  the 5% increase in STCG is likely to adversely affect short-term investors in the near term.

 

 

2:20 PM

Budget 2024: Expert View

 

 

Siddarth Bhamre, Head of Research at Asit C Mehta Investment Interrmediates Ltd 

 

--The budget is economy-centric and especially targets grassroots issues like employment and rural economic stress. 

 

--Multiple direct and indirect schemes and announcements will target the upliftment of the poor, women, youth, and farmers. 

 

--The Finance Minister has made this budget to enhance employment, increase skill sets, ease business for MSMEs, and provide tax measures for the middle class. 

 

--From the capital markets point of view, it would be slightly disappointing as far as taxation is concerned. 

 

--The economic measures announced are the need of the hour for rural employment and reduce stress in the MSME space. This budget has targeted the pain points in the economy.

 

--This budget focuses on the rural economy, employment, and MSMEs. The biggest beneficiary from a stock market perspective will be consumption space especially FMCG and Auto (2-wheelers)

 

2:19 PM

Budget 2024: Expert View

Nitin Rao, CEO, InCred Wealth:

 

--Budget build up for long term measures is positive. Many key areas have a positive build-up without impacting the fiscal position. 

 

--Taxation increases seem negative, though was anticipated. 

 

--Markets will stabilise after the negative shocks in the short term and track the progress of the country in the medium term.

 

 

2:17 PM

Budget 2024: Expert View

Vikas Khemani, founder, Carnelian Asset Management & Advisors:

--The overall budget appears balanced, with the new coalition government clearly focusing on agriculture, manufacturing, employment generation, youth skilling, MSME support, and urban infrastructure development.

--This budget sets priorities for a "Viksit Bharat." Initiatives like the credit guarantee scheme for MSMEs and Mudra Loans are positive steps for MSME growth.

--In terms of tax reforms, the increase in LTCG by 2.5 per cent and STCG by 5 per cent could have been avoided but it is not expected to significantly impact market sentiment.

--The budget maintains good fiscal discipline and yet focusses on channelising resources to the desired sections. We remain confident in investing in India and believe in the vision of Viksit Bharat 2047.

--Many sectors like manufacturing, agriculture, infrastructure and consumption will benefit from this budget."

 

2:15 PM

Union Budget 2024: Here are the key highlights from FM Sitharaman's speech

Union Budget 2024 was presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday, marking her seventh consecutive presentation. Key announcements highlighted the Budget’s focus on the poor, women, youth, and farmers. Sitharaman outlined plans to increase spending, generate jobs, and offer middle-class relief, with extensive job creation expected over the next five years and significant changes in tax brackets and rates. READ MORE

2:12 PM

Andhra Pradesh related stocks rally as FM provides spcl Budget allocation

The Finance Minister, Nirmala Sitharaman, in her seventh India Budget 2024 presentation on Tuesday, announced a special financial support of Rs 15,000 crore for the state of Andhra Pradesh for developing its capital. READ MORE