The Sensex and Nifty experienced a sharp decline following Finance Minister Nirmala Sitharaman’s announcement of an increase in Securities Transaction Tax (STT) on Futures and Options (F&O) securities during her Budget speech for 2024-25.
Initially, the 30-share BSE Sensex showed a positive reaction, rising when Sitharaman began her presentation. However, the optimism was short-lived as the index quickly turned negative, ultimately plummeting 1,266.17 points to 79,235.91 by the afternoon.
Similarly, the NSE Nifty Index saw an early gain but soon fell into a downward trend, dropping 435.05 points to 24,074.20.
At the outset, the Sensex had climbed 264.33 points to 80,766.41, and the Nifty had surged 73.3 points to 24,582.55.
In her Budget presentation, Sitharaman announced a rise in the STT on F&O securities by 0.02% to 0.1%. Additionally, she revealed plans to increase the capital gains exemption limit on certain financial assets to Rs 1.25 lakh per year for middle and upper-middle-class individuals.
This Budget marks the first under Prime Minister Narendra Modi’s third term in office. Sitharaman highlighted that despite global economic uncertainties, India’s economic growth remains robust, with inflation stabilizing around 4% and core inflation at 3.1%.
Among the major Sensex decliners were Larsen & Toubro, Bajaj Finance, Power Grid, Reliance Industries, State Bank of India, and Bajaj Finserv. Conversely, Titan, ITC, Hindustan Unilever, and Adani Ports emerged as the key gainers during the session.
