Budget 2024 Stock Update: Stock Markets Plunge as Capital Gains Tax Hiked, Nifty, Sensex Fall Nearly 2% Each as FM Unveils Budget 2024

The Finance Minister announced a doubling of the Securities Transaction Tax (STT) on futures and options (F&O) trading. The STT rate for equity and index traders will now be 0.02% and 0.1% respectively up from the previous rates. This move appears aimed at curbing excessive speculation in the derivatives market.Additionally Sitharaman proposed raising the long-term capital gains (LTCG) tax rate on all financial and non-financial assets to 12.5% from the earlier 10%. Short-term capital gains on certain financial assets will now attract a higher tax rate of 20% up from the previous 15%.These tax increases were unexpected by investors causing them to unload stocks. The rupee also plummeted to the lowest ever level against the dollar at 83.69, compared with a previous record low of 83.6775.Several sectors however recorded gains which were announced during budget. After the finance minister promised Rs 1.52 lakh crore in farm support, agriculture shares jumped up to 10%. Moreover, basic customs duty on gold and silver as well as key minerals such as copper, lithium and cobalt could be reduced according to government proposal.Looking at individual stocks, ONGC led the top 5 losers chart with a 3.80% decline followed by Larsen & Toubro (-3.51%), Shriram Finance (-3.25%), Hindalco (-3.17%) and Bajaj Finance (-3.04%). On the other side Titan topped the gainers list with a 6.07% increase followed by ITC (4.52%), Tata Consumer Products (3.37%), Hindustan Unilever (1.91%) and Britannia (1.74%)

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