Indian stock SENSEX continues to fall for 4 days
Indian stocks fell 230 points (0.3%) to 80,208 in early morning trading on Wednesday. As traders continue to digest the effects of short- and long-term capital gains tax hikes on financial products, it has declined for 4 consecutive business days.
BSE Sensex followed the decline in US stock futures in response to disappointing quarterly results for megacap tech stocks, and Nifty 50 fell below 24,500.
Traders expect major US economic data such as PMI, home sales, and the PCE index to be released this week.
What suppressed the decline was the latest data showing that India's private sector grew the most for the first time in 3 months, the service sector expanded the most for the first time in 4 months, and growth in factory activity continued to be strong.
With the exception of automobiles, banks, and FMCG, all other sector indices trade in green. The BSE mid-cap index rose 0.5%, and the small-cap index rose 1.6%.
Declines in Tata Consumer Products (-2.6%), Bajaj Finance (-2.5%), Bajaj Finsab (-2.2%), and Mahindra & Mahindra (-1.9%) were noticeable.
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乱空 OP : Nifty could be supported by 24,300: Shree Jayne, founder and CEO of SAS Online
After the budget was announced, Nifty and Bank Nifty fluctuated drastically, but they somehow recovered, and yesterday's session ended flat. Going forward, Nifty is likely to face resistance around 24,500, with 24,300 being an important support level.
Bank Nifty underperformed Nifty due to selling pressure from the banking sector. 51,300 is an important support zone.
After the budget, sectors such as FMCG, IT, and pharmaceuticals showed solidity and underpinned the market. The long-term growth outlook remains strong, which suggests that strong participation by individual investors will continue.
乱空 OP : Intraday mood | SENSEX and NIFTY fall further due to falling banks and FMCG stocks
Nifty and Sensex, which are benchmark indices, declined for 4 consecutive sessions in response to the capital gains tax hike announced in the federal budget. Falling bank stocks and FMCG stocks also worsened sentiment.
As of noon, SENSEX is 0.47% lower at 80,050, and NIFTY is 0.35% lower at 24,392. Approximately 2,463 shares rose, 858 shares fell, and 73 shares remained unchanged.
The broker market index outperformed the headline index and rose by nearly 0.5% and 2%, respectively. The two indices have each risen nearly 22% since the beginning of the year.
乱空 OP : Trends by sector
Unlike the opening, the Nifty Bank Index fell more than 1%, making it the worst performance. The FMCG index also fell 0.5%. This is despite the government putting effort into rural consumption. Last night, HUL announced its first quarter results, and the company's stock fell more than 2% in response to that.
Among rising stocks, real estate stocks and energy stocks each rose by nearly 2%. Energy stocks such as Reliance Industries, NTPC, Coal India, ONGC, and Power Grid led the rise.
乱空 OP : fundamentals
V.K. Vijayakumar, chief investment strategist at Geogit Financial Services, stated, “Now that the STCGS tax and LTCGS tax increases have become a reality, investors should concentrate on investing in stocks that can achieve excellent returns.”
“It's important to understand that this budget focuses on growth with financial stability and reinforces India's growth story. Amid concerns about capital gains tax increases, fiscal restructuring attempted through the budget is a major plus and cannot be overlooked,” he added.