Stock Market Today: Sensex, Nifty Extend Decline For Third Day After Budget Announcement

• The local currency weakened 3 paise to close at 83.69 against the US dollar.

• It closed at 83.66 on Monday.

Source: Bloomberg

India's benchmark stock indices extended losses to third session Tuesday as HDFC Bank Ltd., Larsen & Toubro Ltd. dragged after India received its final budget for financial year 2025.

The NSE Nifty 50 settled 30.20 points or 0.12% lower at 24,479.05, and the S&P BSE Sensex ended 73.04 points or 0.1% lower at 80,429.04.

During the day, the Nifty 50 fell 1.78% to 24,074, and the S&P BSE Sensex declined 1.59% to 79,224.32. The indices witnessed sharp fall after Union Government proposed for higher taxation on short-term and long-term capital gains in the final budget for financial year 2025.

"From the markets perspective the raising of STCG to 20% and LTCG to 12.5% is a body blow," said Sanjay Sinha, founder, Citrus Advisors.

Investors need to brace themselves for a negative reaction in the short term. In the light of all the concerns raised about the hyper active interest in the Future & Options segment, it is not surprising that the securities transaction tax on F&O has been raised 5 times from 0.02% to 0.1%. Hopefully this will moderate the frenzy in this space, Sinha said.

"Mid and Smallcaps also recovered from the lower levels but not sufficiently to outshine the frontline Index. By forming a small red candle with a big lower shadow, the Index has tested and defended its strong support of 24,200. We believe that as long as the Index holds 24,200, the uptrend will remain intact. On the higher side, 24,800 will continue to act as a strong hurdle," said Aditya Gaggar, director, Progressive Shares

HDFC Bank Ltd., Larsen & Toubro Ltd., Reliance Industries Ltd., ICICI Bank Ltd., and Axis Bank Ltd. pressure the benchmark index.

ITC Ltd., Titan Co. Ltd., Infosys Ltd., NTPC Ltd., and Tata Consumer Products Ltd. added to the index.

ON NSE, seven sectors declined, five advanced out of 12. The NSE Nifty FMCG was the top performing sector as it scaled a fresh high during the session after Budget laid out plans to focus on strengthening agricultural production, storage, and marketing out oil seeds.

"The FMCG segment was the top performer of the day by advancing over 2.60% followed by Media and IT while Realty and PSU Banking were the major laggards," Gaggar said.

The NSE Nifty Realty declined the most to become the worst performing sector.

Broader markets ended lower. The S&P BSE Midcap and Smallcap ended 0.74% and 0.18% lower, respectively.

On BSE, 12 sectors declined, and eight advanced out of 20. The S&P BSE FMCG rose the most, while the S&P BSE Realty declined the most.

Market breadth was skewed in favour of sellers. Around 2,155 stocks declined, 1,743 stocks rose, and 118 stocks remained unchanged on BSE.

• Gland Pharma Ltd. has received a tentative approval from US Food and Drug Administration for Latanoprostene Bunod ophthalmic solution.

Source: Exchange filing

• Approves closure of Southcan unit in Karnataka post implementation of voluntary retirement scheme last FY

• Factory produced ~6.28% of total production capacity of co last FY

Source: Exchange filing

• ITC, up 4.1%

• Titan Co, up 6.75%

• NCC, up 9%

• AstraZeneca Pharma, up 12%

• Amara Raja, up 2.5%

  As of 2:35 p.m.