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Stock market crash: Sensex falls 600 points, Nifty below 24,350 after Budget
Foreign fund outflows and a negative global market trend also dampened sentiment in the domestic markets further.
Indian stock market indices Sensex and Nifty continued their decline from Budget day following Nirmala Sitharaman's proposal to increase the securities transaction tax on futures and options. Foreign fund outflows and a negative global market trend also dampened sentiment in the domestic markets further.
Read more: Zerodha's Nithin Kamath decodes Budget 2024: Speculation 'much more expensive'
What experts think about the stock market crash?
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Now that the steep increase in STCGs tax and the marginal increase in LTCGs tax on equity is a reality, investors should focus on investing in stocks which can deliver superior returns. In the present context FMCG stocks look attractive from the valuation perspective. Watch out for stocks like ITC and United Spirits. It is important to understand that the Budget strengthens the India Growth Story with focus on growth with financial stability.”
From the Sensex pack, Hindustan Unilever dropped 3 per cent after the firm reported just a 2.2 per cent rise in consolidated net profit at ₹2,612 crore for April-June FY25 impacted by price reductions.
Bajaj Finance, Nestle, HCL Technologies, UltraTech Cement, Mahindra & Mahindra and Adani Ports were the other big laggards.
However, ITC, Tata Motors, Tech Mahindra and NTPC were among the gainers.
The key benchmark indices ended marginally lower in volatile trade on Tuesday as the government proposed to hike the securities transaction tax on futures & options in the Budget for 2024-25.
On Tuesday, the BSE benchmark settled lower by 73.04 points or 0.09 per cent at 80,429.04. The Nifty dipped 30.20 points or 0.12 per cent to 24,479.05.
