Market Extends Decline On Tax Hike; Nifty, Sensex Negative

The Indian stock market appeared to remain dull due to the recent tax hike proposed in the Union Budget. The benchmark indices, Nifty and Sensex ended lower due to increase in the capital gains tax. 

The National Stock Exchange (NSE) Nifty 50 index ended 0.27 per cent lower at 24,413 whereas the S&P Bombay Stock Exchange (BSE) Sensex settled 280 points or 0.35 per cent lower at 80,148 levels on the closing bell. 
 

Nifty Moves

In the Nifty 50 index, 19 stocks advanced in the positive territory, while 31 stocks ended in the red territory.

Among the winners, HDFC Life traded with highest gains of 4.48 per cent followed by nearly 3 per cent gain in BPCL. Tech Mahindra, NTPC, Tata Motors and SBI Life also traded more than 2 per cent higher. 

Among the losers, Bajaj Auto and Tata Consumers led the losses of more than 2 per cent each. Britannia and Axis Bank lost 1.94 per cent and 1.9 per cent respectively. 

Analyst Note

“Profit-taking continued as investors cut their position in banking and automobile stocks, which led to a fall in key benchmark indices. However, markets ended off their lows on selective buying support although concerns of higher valuations continue to weigh,” said Prashanth Tapse, Senior VP (Research), Mehta Equities. 

Sectoral Movement

In terms of sectoral performance, Nifty Bank and Financial Services remained muted, while PSU Banks fell 0.35 per cent. 

Metal and Auto traded with negligible fluctuations. IT gained 0.18 per cent and FMCG lost around half a per cent. Pharma and Nifty Realty climbed 0.74 per cent and 0.78 per cent respectively.

However, the more domestically focussed indices, Mid-cap and Small cap also traded with significant gains and ended 1.04 per cent and 1.76 per cent higher respectively.