In rollercoaster ride, Indian stocks closed in red on Budget day - World News Network

New Delhi [India], July 23 (ANI): The Indian benchmark indices experienced significant volatility as Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 under the Modi 3.0 government on Tuesday.
A notable market-moving announcement was the increase in long-term capital gains tax to 12.5 per cent from the previous 10 per cent. Initially, the Sensex plummeted to a day’s low of 79,224, down 1,278 points, while the Nifty 50 dropped 435 points to 24,074. However, both indices swiftly recovered, closing with the Nifty at 24,476.55 and the Sensex at 80,429.04.
Among stocks, top gainers included TITAN, ITC, and TATACONSUM, while losers included LT, HINDALCO, and SHRIRAMFIN.
ITC, one of the biggest gainers during today’s trade, saw its stocks trading at 6.52 per cent higher. The stocks of the company gained because of no changes in tobacco taxation. The rate remained unchanged following a hike of 16 per cent in National Calamity Continuity (NCCD) last year.
In broader markets, the Mid Cap and Small Cap indices saw sharp recoveries from their lows, ending the day with the Mid Cap down 1.20 per cent and the Small Cap down 0.75 per cent by 1:15 PM.
The budget emphasized infrastructure development with an allocation of Rs 11.11 lakh crore (3.4 per cent of GDP) and an additional interest-free loan of Rs 1.5 lakh crore to states. It also focused on industrial parks and renewable energy incentives, aiming to bolster economic growth and sustainability.
Fiscally, the government targeted a reduced fiscal deficit of 4.9 per cent compared to 5.1 per cent in the interim Budget, supported by higher dividends from the Reserve Bank of India and improved tax collections.
The budget underscored macroeconomic stability, reforms continuity, and initiatives for job creation and skill development.
This budget, with its detailed allocations and revenue plans, underscores the government’s strategy to foster economic resilience, technological advancement, and sustainable growth.
In terms of sector-specific allocations, defence receives the highest allocation at Rs 4,54,773 crore. Rural development is allocated Rs 2,65,808 crore, reflecting the government’s focus on boosting rural economies.
Agriculture is set to receive Rs 1,51,851 crore, while home affairs are allocated Rs 1,50,983 crore, underscoring the importance of internal security. Education, a critical sector for future growth, is allocated Rs 1,25,638 crore. The IT and Telecom sector, pivotal for digital transformation, receives Rs 1,16,342 crore. Health is allocated Rs 89,287 crore, emphasising the ongoing commitment to improving healthcare infrastructure. The energy sector is earmarked Rs 68,769 crore, social welfare Rs 56,501 crore, and commerce and industry Rs 47,559 crore. (ANI)

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