July 23, 2024
New Delhi, India
Market Highlights
Indian stock markets experienced a significant drop on Tuesday following the government’s proposal to increase taxes on capital gains and derivatives trading. The NSE Nifty 50 and S&P BSE Sensex each fell about 1%, trading at 24,225 and 80,024 respectively intraday. Additionally, the Indian rupee hit a record low against the US dollar, trading at 83.69.
Market closed with a flat note, Nifty closed at 24,479.05 down −30.20
Market Performance: Gainers:
- Consumer Stocks: Despite the overall market downturn, consumer stocks gained 2% following the government’s announcement of a 1.52 trillion rupees allocation for the agriculture and allied sectors.
- Agriculture Stocks: Kaveri Seeds, Mangalam Seed, and Dhanuka Agritech rose between 4.4% and 10.5%.
- Fisheries Stocks: Avanti Feed and Coastal Corp increased by 4.3% and 2.3%, respectively, after the government pledged financial support for the sector.
Losers:
- Capital Goods Stocks: Stocks like Larsen & Toubro, ABB India, Thermax, and Siemens lost between 1.5% and 5% after the government did not increase its planned infrastructure spending. L&T emerged as the top Nifty 50 loser.
Sector Performance:
- Positive Sectors:
- Auto, FMCG, healthcare, and IT indices rose by 0.5-2%.
- Negative Sectors:
- Bank, capital goods, metal, oil & gas, and realty sectors declined by 0.5-2%.
Trading Activity: On July 22, Domestic Institutional Investors (DIIs) net sold shares worth ₹1,652.34 crore, while foreign investors net bought shares worth ₹3,444.06 crore.
Closing Bell:
The indian stock market closed lower today as the increase in Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG) taxes weighed heavily on investor sentiment. The Sensex and Nifty were impacted by the proposed tax hikes, with capital goods and real estate sectors underperforming. Consumer stocks provided a rare bright spot, benefiting from the government’s spending plans in agriculture and allied sectors. The Indian rupee’s record low added to the market’s cautious mood.
Rupee(USDINR) was trading at 83.711 up+0.035(+0.04%) at 3:47 p.m today.
Disclaimer:
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