FIRST TRADE: Indices slip; Sensex down over 50 pts, Nifty below 24,500, ITC up over 2%, Bajaj Finance down over 1%
Stock market today: At the last count, both indices were down 0.19 per cent, Sensex was down 154.36 points at 80,274.68 and Nifty slipped 46.6 points at 24,432,45.
Stock market today: The Indian share market on Wednesday, July 24, began the session in the negative territory a day after Indian Finance Minister Nirmala Sitharaman presented the union budget. At the last count, both indices were down 0.19 per cent, Sensex was down 154.36 points at 80,274.68 and Nifty slipped 46.6 points at 24,432,45.
"Now that the steep increase in STCGs tax and the marginal increase in LTCGs tax on equity is a reality, investors should focus on investing in stocks that can deliver superior returns. In the present context, FMCG stocks look attractive from the valuation perspective. Watch out for stocks like ITC and United Spirits," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Dr. V K Vijayakumar added it is important to understand that the budget strengthens India's growth story with a focus on growth and financial stability. The fiscal consolidation being attempted through the Budget is a big positive that should not be missed amidst the concerns of an increase in capital gains tax. Another important factor is that the removal of indexation benefits on gold and real estate will make equity a relatively superior asset class.
Further, as per him, the higher tax on F&O trading is intended to discourage the excessive speculation in this segment and, therefore, is a welcome move.
In the broader market, Nifty Midcap 100 and Smallcap 100 traded over half a per cent higher. High-beta Nifty Bank was down 0.21 per cent at 51,670.3.
BUZZING STOCKS
United Spirits shares were up over 4 per cent after the company reported better-than-estimate Q1 results.
ICICI Prudential Life Insurance Company shares were up over 5 per cent despite the company posting below estimated Q1 numbers.
Bajel Projects shares were up over 8 per cent after the company received an order worth Rs 586 crore from Power Grid.
ITC shares were up over 2 per cent after global brokerages revised their stance.
Conversely, HUL shares were down nearly 1 per cent despite the company reporting good Q1 results.
Bajaj Finance shares were down over 1 per cent after the company reported weak Q1 numbers.
Torrent Pharma shares were down over 3 per cent after the company reported in-line Q1 numbers
Tata Consumer Products shares were down over 2 per cent after the company announced rights issue will be open from August 5 to 19.
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