Stock Market Budget 2024 Highlights: Markets closed on a negative note as the government increased short-term capital tax gains and long-term capital gains tax. However, to boost foreign investment the government announced that there’ll be no angel tax across any asset class. The Nifty 50 closed 33 points or 0.13% lower at 24,476.55, while the BSE Sensex closed 62 points or 0.08% lower at 80,440. The long-term capital gains tax was revised to 12.5% from 10%. The government revised the Security Transaction Tax to 0.02% from 0.01% for F&O. Bank Nifty closed 502 points or 0.96% lower at 51,778, while the Nifty Midcap 100 fell 339 points or 0.60% to settle at 56,285.25.
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Budget 2024 Stock Market Highlights: Nirmala Sitharam presented her 7th budget in parliament
As the finance minister prepares to unveil the Union Budget 2024, the market opens with a positive sentiment led by UltraTech Cement, HDFC Life Insurance, Grasim, Mahindra & Mahindra, and Eicher Motors are the top gainers on NSE Nifty 50 index whereas the top laggards include ONGC, Shriram Finance, HDFC Bank, Divis Lab, and Wipro.
In 2013, P. Chidambaram presented the Union Budget in which he proposed higher taxes for wealthy individuals and companies. Chidambaram introduced a 10% surcharge on people earning over Rs 1 crore annually and on companies who have revenues more than Rs 10 crore. To this markets responded negatively, watching a dip of 1.52% in Sensex.
The NSE Nifty 50 opens up by 59.65 points or 0.24% at 24,568.90, while the BSE Sensex gains 222.22 points or 0.28% to 80,724.30 in the opening trade.
As Nirmala Sitharaman presents her seventh straight budget-breaking record of Morarji Desai, including one interim budget this year. Markets’ sentiments were not in favour of Nirmala Sitharaman when she presented the interim budget on February 01, 2024. Stock markets closed in negative territory, Sensex fell 0.15% and Nifty 50 closed 0.13% lower. While midcap stocks bled the most. However, interestingly, bank Nifty inched 0.42% higher.
In 2019, when the NDA government for the first time presented the Union Budget, frontline indices rose higher. Auto major pulled the indices higher along with defence stocks as Piyush Goyal increased the defence budget for FY20 to Rs 3 lakh crore.
Equity mutual funds recorded an inflow of Rs 40,608.19 crore in June, marking a 17% increase and setting a new high for the segment. According to the latest data from the Association of Mutual Funds of India (AMFI), the inflow in May was Rs 34,670.9 crore. The significant rise is attributed to investments in various fund categories, including sectoral and thematic funds, which saw inflows totaling Rs 22,351 crore.
Going Back to 2022, Dalal Street welcomed Union Budget 2022 with an open heart. Sensex jumped 1.46%, almost 850 points, to settle above 58,800. The NSE Nifty 50 advanced 1.37% to close the session at 17,576. However, PSUs like Poer Grid Corp, State Bank of India, NTPC, and others were major draggers.
Federal Bank, the Kochi-based private lender, announced on Monday that the Reserve Bank of India has approved the appointment of Krishnan Venkat Subramanian as the new Managing Director and CEO for a three-year term, starting September 23, 2024.
“Rising US-China tension, US President Joe Biden’s withdrawal from the presidential race and mixed set domestic earnings so far especially from heavyweights has dented investor sentiments. Moreover, the market is cautious ahead of the Union Budget tomorrow, especially given the conservative growth forecast in the economic survey released during the day. Though the budget is largely expected to be growth-oriented, with the announcement of some measures aimed at addressing the rural economy; this is largely factored in by the market. Investors will look out for signs of further traction. We could see some volatility tomorrow along with sector and stock-specific actions,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.
Usually during such big events, the markets have very high volatility. Interestingly, during the budget of FY24, India’s VIX, which measures volatility in markets, fell 11% to a level of 16.88.
Net revenue increased by 17.4% year-on-year to Rs 604.7 crore. The overall laminate business grew by 13.2% in value terms and 11.9% in volume terms year-on-year. EBITDA remained flat at Rs 64 crore, while net profit declined by 39.7% to Rs 19.9 crore. Higher interest costs and depreciation for newer projects impacted the company’s profitability. The international business was affected by delayed container availability, longer shipment times, and increased freight costs for both imports and exports. The container availability issue has resulted in 1.5 lakh sheets worth nearly Rs 15 crore lying for dispatch at plants. Domestic growth was also impacted by the harsh summer and general elections. Net debt stands at Rs 921.8 crore.
Suzlon Energy has reported a record-breaking Q1FY25, with an 86% increase in EBITDA to Rs 370 crore and the highest quarterly deliveries in seven years. This strong performance was driven by a record order book of 3.8 GW, the largest in the company’s 29-year history.
“Bank Nifty closed with a small body candlestick on the daily chart, just above its support at 52,200. Call writers were active at higher strike prices, indicating limited upside potential. Despite this, Bank Nifty managed to close above its 21-day EMA, suggesting resilience in the underlying trend. The view for Bank Nifty remains sideways or range-bound until it breaks key levels, with support at 52,000 and resistance at 52,800,” said Rupak De, Senior Technical Analyst, LKP Securities.
On February 01, 2023, when the Finance Minister presented the full budget markets ended on a mixed note while the domestic indices rose during the session. BSE Sensex jumped 1100 points, intraday, climbing but closing 158 points higher at 59,708.08. The NSE Nifty 50 rose during the day but fell as soon as FM finished speech ending the session at 17,616.30.
The company has emerged as the winning bidder for 116 MW (150 MWp) of solar projects in Gujarat, with an estimated EPC revenue of Rs 600 crore. These projects will be distributed across 27 locations under the purview of Paschim Gujarat Vij Co., the state electricity distribution company. Aiming for feeder-level solarisation, the projects are anticipated to be operational within 12 months from the issuance of the Letter of Award.
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said On the daily chart, A small-bodied candle has formed on the daily chart following a bearish engulfing pattern, suggesting a pause before the next movement. The Relative Strength Index (14) has entered a bearish crossover and is exiting the overbought zone. The 24550 level is likely to act as an immediate hurdle for Nifty. A move above 24550 might induce a meaningful rally in the Nifty, while support is placed at 24480. A decisive fall below 24480 might induce selling pressure in the market.
Shares in the Asia-Pacific region are trading in positive territory on Tuesday morning. The Asia Dow is trading down by 0.31%, where as the Japan’s Nikkei 225 is trading in green, up by 0.39%, South Korea’s KOPSI index is traded higher by 0.68% and the benchmark Chinese index Shanghai Composite is trading flat by 0.02%.
Oil prices remained steady near a six-week low as traders awaited new insights on market balances, including the outlook for US stockpiles. The WTI crude prices are trading at $78.29 up by 0.08%, while Brent crude prices are trading at $82.35 up by 0.19%, on Tuesday morning.
Foreign institutional investors (FII) bought shares worth Rs 3,444.06 crore, while domestic institutional investors (DII) offloaded shares worth Rs 1652.34 crore on July 22, 2024, according to the provisional data available on the NSE.
Wall Street’s three benchmarks ended higher on Monday as investors returned to megacap growth stocks, helping both the S&P 500, opens new tab and Nasdaq Composite, opens new tab recover from their worst weekly performance since April, reported Returns. The tech-heavy Nasdaq Composite ended up by 280.63 points or 1.53% at 18,007.57. The S&P 500 ended higher by 59.41 points or 1.08% at 5,564, while the Dow Jones Industrial Average is up by 127.91 point or 0.32% at 40,415.44.
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Today is a special day as Finance Minister Nirmala Sitharaman will present the Union Budget 2024, for which investors are keenly awaiting.
Have a great day ahead. Good luck!