Market Volatility Amid Budget 2024-25 Announcements

The benchmark indices Sensex and Nifty settled marginally lower in volatile trade following the announcement of the 2024-25 budget, which proposed a hike in securities transaction tax on futures & options. Despite intra-day losses, the market saw partial recovery due to tax exemptions and duty cuts boosting consumer durables and FMCG shares.

The benchmark Sensex and Nifty indices experienced marginal declines in another volatile trading session on Tuesday as the government proposed to increase the securities transaction tax on futures and options within the budget for 2024-25. Despite recovering the majority of its intra-day losses, the 30-share BSE Sensex dropped by 0.09 per cent, closing at 80,429.04.

The Sensex index experienced significant fluctuation, dropping by over 1,200 points during the day, coinciding with Finance Minister Nirmala Sitharaman's announcement of budget proposals. The index reached its lowest at 79,224.32 points when details of the increased STT on F&O trade and long-term capital gains tax on equities emerged.

However, tax exemptions and cuts in customs duties gave a boost to consumer durables and FMCG shares, helping the market recover from its earlier losses. The NSE Nifty index also dipped slightly by 0.12 per cent, closing at 24,479.05, after falling by 435.05 points to an intra-day low of 24,074.20.