Feedback | Tuesday, May 21, 2024

Sensex, Nifty decline amid selling pressure on large caps

The BSE Sensex and Nifty fell on Friday as selling pressure in index heavyweights after the Nifty hit a record high dragged the indices into negative territory.

Additionally, market sentiment was dampened by rumors circulating about potential tax changes in the upcoming Union Budget of July 2024.

The Sensex lost 732.96 points, closing at 73,878.15, while the Nifty dropped 172.35 points, ending the day at 22,475.85.

Notable gainers included Coal India, Bajaj Finance, Grasim, Tata Consumer Services, and ONGC, while Bharti Airtel, Reliance, Nestle India, Maruti, and JSW Steel were among the top losers.

According to market expert Ajay Bagga, there were rumors suggesting that tax treatment for all asset classes would be equalized in the upcoming budget, bringing long-term capital gains to the marginal tax rate.

“There was selling in index heavyweights that brought the Nifty and Sensex down. There were rumors in the market that tax treatment for all asset classes will be equalized in the Union Budget of July 2024. This would bring long-term capital gains to the marginal tax rate,” Bagga said.

“While the actual revenue impact of such a move is doubtful, the rumors had a significant negative impact on market sentiment,” he added.

(With ANI input)

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Last Updated: 21st May 2024