Market Sentiments Decline Post-Budget: Sensex Down 280 Points, Nifty by 65

Startup Business Economy

Posted by pallavi on 2024-07-26 05:11:12 |

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Stock Market Reaction to Budget

The Indian stock markets experienced a significant decline following the government's budget announcement. The BSE Sensex dropped 280.16 points to 80,148.88, and the NSE Nifty 50 decreased by 65.55 points to 24,413.50. This reaction was largely attributed to the government's decision to raise taxes on capital gains and trading derivatives, which negatively impacted investor sentiment.

Market Analysis and Expert Opinions

Market analysts expressed concerns that the hike in long-term capital gains (LTCG) tax from 10% to 12.5% would deter savings and investments. Gaurav Bora of Laksh Financial Solutions and C.S. Iyer, a senior investment planner, criticized the move, suggesting it could discourage market participation at a time when investor engagement was increasing.

Corporate Earnings: A Silver Lining

Despite the overall market downturn, some companies reported strong earnings. Larsen & Toubro (L&T) beat first-quarter profit and revenue estimates due to robust project execution, highlighting the company's strong order book. SBI Life Insurance also posted a 36% rise in first-quarter profit, driven by high demand for market-linked products.

Technical Outlook and Market Trends

Nifty's short-term trend remains choppy, with analysts predicting potential buying opportunities around the 24,100-24,000 support levels. The market's ability to sustain above these levels is crucial for a bullish reversal. Despite the budget-induced profit booking, mid-cap and small-cap segments showed resilience, reflecting optimistic market outlooks.

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