Stock markets fall for 4th day on selling in banking shares, STT hike

PTI, Jul 24, 2024, 4:29 PM IST

Representative image (source: PTI)

Mumbai: Benchmark BSE Sensex declined for the fourth day in a row on Wednesday due to selling in financial and banking shares and the government’s move to hike securities transaction tax and short term capital gains tax.

The 30-share BSE Sensex declined 280.16 points or 0.35 per cent to settle at 80,148.88 with 19 of its components closing lower and 11 with gains. During the day, it tumbled 678.53 points or 0.84 per cent to 79,750.51.

The NSE Nifty dropped 65.55 points or 0.27 per cent to 24,413.50.

From the Sensex pack, Bajaj Finserv declined by 2 per cent after its first-quarter earnings failed to cheer investors.

Bajaj Finance, Hindustan Unilever, Kotak Mahindra Bank, Adani Ports, Axis Bank and State Bank of India were the other big laggards.

However, Tech Mahindra, ITC, NTPC, Tata Motors and Sun Pharma were among the gainers.

Conglomerate ITC surged to 52-week highs before closing higher by 0.42 per cent in its second straight day of gains after the budget proposed no new tax on tobacco products.

“The budget event has gone by leaving a mixed bias while reshuffling of capital gain tax is only a short-term negative surprise. The broad market seems to be losing momentum due to lack of further traction,” Vinod Nair, Head of Research, Geojit Financial Services said.

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.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower. European markets were trading lower. The US markets ended marginally lower on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,975.31 crore on Tuesday, according to exchange data.

Global oil benchmark Brent crude jumped 0.75 per cent to USD 81.62 a barrel.