Budget 2024.
After the announcement of Budget 2024, the stock market has shown signs of volatility. Finance Minister Nirmala Sitharaman presented the budget for the seventh consecutive time in her tenure, and the market’s reaction has been mixed.
Initial Market Response.
Initially, the stock market showed positive movement. The market opened in the green zone, with government company stocks experiencing a surge. However, this bullish trend was short-lived. By 9:45 AM, the stock market experienced a decline, falling by approximately fifty points and entering the bear zone.
Changes in Taxation Impact.
A significant factor influencing the market is the change in tax rates. The long-term capital gains tax (LTCG) has been increased to 12.5% from the previous rate of 10%. Additionally, short-term capital gains tax (STCG) on selected systems has been raised to 20%. These changes have caused a considerable shock among investors.
Sector-Specific Reactions.
The budget has introduced notable changes for certain sectors. NTPC and BHEL have received substantial reductions and are set to collaborate on establishing a super ultra thermal power plant. This development has led to a strong increase in the shares of both companies.
Market Trends and Predictions.
Despite the initial green signal, the stock market showed a downward trend. The Nifty index was trading down by 125 points, and the overall market sentiment remained cautious. The last trading day witnessed significant upheaval, ending with a red mark.
Future Outlook.
The market’s future performance may hinge on further government announcements. A major positive announcement could potentially boost the stock market. For now, the market is reacting cautiously to the recent budget presentation.
What are your thoughts on the impact of Budget 2024 on the stock market? Share your opinions in the comment section below.