Sensex and Nifty open lower after budget; realty stocks fall, ITC rises
PTC News Desk:Benchmark stock market indices opened slightly lower the day following Finance Minister Nirmala Sitharaman's presentation of the Union Budget 2024.
The NSE Nifty50 was down 15.90 points at 24,463.15, and the S&P BSE Sensex was down 48.96 points at 80,380.08 at 9:24 a.m. All other major market indices had flat opening trading as well. When Sitharaman proposed removing the indexation benefit for specific asset classes, like as gold and real estate, Nifty real estate fell while most other sectoral indices rose.
Experts predict that real estate stocks may experience a brief impact from the change.
On the other hand, the government's declaration regarding income taxes is likely to benefit stocks that cater to consumers. To make the new tax regime a little more bearable, the standard deduction has been raised and the tax slabs have been somewhat changed.
ITC, Titan, Tata Motors, HDFCLife, and Tech Mahindra were the top five gainers on the Nifty50. On the other hand, the largest losers were Britannia, Nestle India, HUL, Bajaj Finance, and Tata Consumer Products.
The chief investment strategist at Geojit Financial Services, Dr. V K Vijayakumar, 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." FMCG stocks seem attractive from a valuation perspective in the present climate.
"Shares like ITC and United Spirits should be avoided. It is important to understand that the Budget strengthens the India Growth Story by placing a strong emphasis on growth and financial stability. Even with concerns about a potential rise in capital gains tax, the Budget's goal of fiscal consolidation is definitely a positive step in the right direction. The speaker went on to say that another important factor to take into account is the fact that equity will be a better asset class overall because real estate and gold would no longer have the indexation benefits.
"The higher tax on F&O trading is intended to discourage the excessive speculation in this segment and, therefore, is a welcome move."
- PTC NEWS
