In the early trade on Wednesday, the stock market benchmark indices Sensex and Nifty decreased following their Budget day decline, as the government suggested an increase in securities transaction tax on futures and options.
Additionally, foreign fund outflows and a weak trend in global markets negatively affected the domestic markets.
The 30-share BSE Sensex, after a weak start, dropped further by 233.7 points to 80,195.34. Meanwhile, the NSE Nifty declined by 73.45 points to 24,405.60.
Within the Sensex, Hindustan Unilever experienced a 3% drop following a report of only a 2.2% increase in consolidated net profit at Rs 2,612 crore for April-June FY25, impacted by price reductions.
Other major decliners include Bajaj Finance, Nestle, HCL Technologies, UltraTech Cement, Mahindra & Mahindra, and Adani Ports.
In contrast, ITC, Tata Motors, Tech Mahindra, and NTPC showed gains.
The key benchmark indices ended marginally lower in volatile trade on Tuesday as the government proposed to hike the securities transaction tax on futures & options in the Budget for 2024-25.
On Tuesday, the BSE benchmark settled lower by 73.04 points or 0.09 per cent at 80,429.04. The Nifty dipped 30.20 points or 0.12 per cent to 24,479.05.
"Now that the steep increase in STCGs (Short-Term Capital Gains Tax) and the marginal increase in LTCGs (Long Term Capital Gains Tax) on equity is a reality, investors should focus on investing in stocks which can deliver superior returns. In the present context FMCG stocks look attractive from the valuation perspective," said V K Vijayakumar, Chief Investment Strategist Geojit Financial Services.
In Asian markets, Seoul, Tokyo, and Hong Kong traded lower while Shanghai traded higher.
The US markets ended marginally lower on Tuesday.
According to exchange data, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,975.31 crore on Tuesday.
Global oil benchmark Brent crude traded higher by 0.38 per cent to USD 81.32 a barrel.
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