BackSensex, Nifty fall nearly 1% each on STT hike, other concerns
The Nifty 50 index closed 0.77 per cent lower or 131.90 points, at 16,945.05, while BSE Sensex fell 398.18 points, or 0.69 per cent, at 57,527.10.
PremiumThe Indian shares extended losses for the third consecutive week as amid volatility and widespread selling after the government hiked securities transaction tax (STT) on futures and options contracts, along with other amendments in Finance Bill 2023.
The Nifty 50 index closed 0.77 per cent lower or 131.90 points, at 16,945.05, breached psychological level of 17,000. The S&P BSE Sensex fell 398.18 points, or 0.69 per cent, at 57,527.10. Both the benchmarks logged weekly losses of nearly per cent.
All of the sectoral indices ended in the red with Media, Metal, Realty, and PSU Bank dropping the most. IT remained strong throughout the session but ended with marginal losses.
Bajaj Finserv was the biggest loser among the Sensex constituents, sliding 3.81 per cent, followed by Bajaj Finance, Tata Steel, Reliance Industries, HCL Tech, SBI, Larsen & Toubro and Mahindra & Mahindra, Axis Bank and Titan.
On the other hand, Kotak Mahindra Bank, Infosys, Tech Mahindra, Power Grid, Asian Paints and Wipro were the gainers.
According to the amended Finance Bill, debt Mutual Funds (MFs) will now attract short-term capital gains if they invest less than 35 percent of their assets in equities.
The Future & Option (F&O) trading is going to cost more from 1st April 2023 as Finance Bill 2023 amendment has provision to raise Security Transaction Tax (STT) on sale of options and futures. The Finance Bill 2023 amendment tabled and passed by Lok Sabha on Wednesday informs that STT applicable on sale of options has been raised by 23.52 per cent
“Cues from both the global and domestic markets were subdued. The asset management industry was hit hard by tax changes and the elimination of the indexation benefit of debt mutual funds. The volatility was fuelled by weak European markets, which was driven by banking stocks as CDS spread increased. Although all major sectors traded in the red, selling in the IT sector was limited despite warnings of muted growth," said Vinod Nair, Head of Research at Geojit Financial Services.
While, Bank Nifty lowered by 221 points or 0.56% to 39,395. Forty-one of the Nifty 50 constituents fell on Friday.
“The Bank Nifty bears took over the control on the last day of the week and the index ended on a negative note. The index as long as does not surpass the level of 40000 remains ina sell on rise mode. The immediate support on the downside is at 39000 and a breach below this will lead to a sharp decline. The momentum indicator RSI trading in the bearish zone confirms the weakness in the index," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Meanwhile, the rupee declined 25 paise to close at 82.45 against the US dollar.
Global oil benchmark Brent crude dipped 1.73 per cent to USD 74.60 per barrel.
Foreign Portfolio Investors offloaded equities worth ₹995.01 crore on Thursday after a day's breather, according to exchange data.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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