Benchmark equity indices settled marginally lower in a volatile session on Tuesday as Finance Minister Nirmala Sitharaman proposed to hike securities transaction tax (STT) on futures and options in the Union budget 2024.
Rebounding most of its intraday losses of over 1,200 points, the BSE Sensex closed 73.04 points or 0.09 per cent down at 80,429.04.
The index plunged 1,277.76 points or 1.58 per cent to hit a low of 79,224.32 as Sitharaman announced a hike in STT on F&O trade and an increase in long-term capital gains (LTCG) tax on equities. However, tax exemptions and customs duty cuts helped boost consumer durables and FMCG shares, supporting stocks to recover from the day’s lows.
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The NSE Nifty fell 30.20 points or 0.12 per cent to close at 24,479.05. Intra-day, it tanked 435.05 points or 1.77 per cent to 24,074.20.
“The Union Budget 2024-25 has presented short-term challenges for the markets. The rise in capital gains tax rates and the increased STT are short term negative. The capital expenditure allocation, unchanged at Rs 11.1 lakh crore, fell short of the expected Rs 11.5-12 lakh crore. However, the budget does have its positives. The fiscal deficit has been reduced to 4.9 per cent, compared to 5.1 per cent in the interim budget, demonstrating a solid fiscal consolidation path,” said Pranav Haridasan, MD & CEO of Axis Securities.
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“Additionally, the budget places a strong emphasis on welfare schemes, aiming to alleviate rural distress and support the rural economy. Despite the initial market reaction, the impact is expected to be temporary, with a return to normalcy anticipated soon,” he added.
Here are the key stocks to watch on July 24:
Hindustan Unilever: The FMCG giant posted a 2.2 per cent rise in consolidated net profit at Rs 2,612 crore for the April-June quarter of FY24 impacted by price reductions. The company had reported a net profit of Rs 2,556 crore in the June quarter of FY24. Revenue from sales of products increased marginally by 1.68 per cent to Rs 15,497 crore compared to Rs 15,240 crore a year ago.
Bajaj Finance: India’s largest non-banking financial company (NBFC) announced a 14 per cent year-on-year growth in net profit to Rs 3,912 crore for the April-June quarter. Net interest income (NII) for the reported quarter surged 25 per cent YoY to Rs 8,365 crore from Rs 6,717 crore in the same quarter of last year.
Tata Consumer Products: The company announced details of its rights issue through which it aims to raise up to Rs 3,000 crore. Tata Consumer plans to issue 3.66 crore rights equity shares for an amounts of Rs 2,997.77 crore. The price for each rights share has been fixed at Rs 818, a discount of 35 per cent to the closing price on Tuesday.
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United Spirits: The leading liquor maker posted a 1.7 per cent YoY surge in consolidated net profit to Rs 485 crore for the June quarter, compared to Rs 477 crore in the year-ago period. The company’s consolidated net sales increased 3.5 per cent to Rs 2,761 crore, up from Rs 2,667 crore in the corresponding quarter of previous fiscal.
ICICI Prudential: The life insurance major reported profit after tax (PAT) of Rs 224.34 crore for the June quarter, up 9 per cent from Rs 206.19 crore in the year-ago period. The company’s net premium income surged to Rs 7,875 crore from Rs 7,020 crore a year ago.
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