The benchmark BSE Sensex continued its downward spiral for the fourth consecutive day. On Wednesday, the index declined by a notable 280 points, wrapping up the session at 80,148.88.
"A wave of profit booking in financial and banking shares following the government's announcement of increased securities transaction tax and short-term capital gains tax in the latest budget for 2024-25 has let to this slump", experts belief.
The day's trading saw the 30-share Sensex plummet as much as 678.53 points, or 0.84 percent, to hit a low of 79,750.51 before clawing back some ground. By the end of the session, 19 of its components were in the red, leaving only 11 in the green.
The NSE Nifty wasn't spared either, dropping 65.55 points or 0.27 percent to close at 24,413.50.
Among the biggest losers in the Sensex pack was Bajaj Finserv, which saw a 2 percent decline after its lackluster first-quarter earnings report failed to impress investors. Other significant laggards included Bajaj Finance, Hindustan Unilever, Kotak Mahindra Bank, Adani Ports, Axis Bank, and State Bank of India.
A few stocks managed to buck the trend. Tech Mahindra, ITC, NTPC, Tata Motors, and Sun Pharma emerged as gainers.
ITC hit 52-week highs and closed up by 0.42 percent for the second straight day, buoyed by the budget's proposal to keep tobacco taxes unchanged.
"The budget event has gone by leaving a mixed bias while reshuffling of capital gain tax is only a short-term negative surprise. The broad market seems to be losing momentum due to lack of further traction," commented Vinod Nair, Head of Research at Geojit Financial Services.
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