After Finance Minister Nirmala Sitharaman proposed higher capital gains taxes in the Budget 2024, Indian stock market sentiment has dipped slightly. However, the focus on fiscal prudence and key sector investments in the Budget provides some comfort. Following a flat, slightly negative close previously, the Sensex and Nifty 50 both fell about 0.30% in the morning session.
Experts believe the increased long-term and short-term capital gains taxes are short-term issues, and investors will eventually refocus on corporate earnings, economic data, and global trends. They highlight that the Budget 2024 balances economic growth with financial stability. Despite concerns over higher capital gains tax, the fiscal consolidation efforts are a positive aspect. Removing indexation benefits for gold and real estate may make equity investments more attractive.
Market Update
After a 0.1% decline in the previous session, the Nifty 50 opened at 24,444.95, down from the previous close of 24,479.05, and fell about 0.3% to 24,395. By 9:50 am, it was down 0.28% at 24,411.
Top losers in the index included Hindustan Unilever, Tata Consumer, and Nestle, while ITC, HDFC Life, and Tata Motors were among the top gainers.
Technical experts note that the index faces resistance between 24,550 and 24,590.
“The level of 24,000 served as a base for bulls, but a bearish MACD crossover still poses challenges for this reversal attempt. The 24,550-24,590 zone is likely to be an immediate hurdle, while support is expected between 24,360 and 24,250. If 24,000 is breached, the next support zone lies between 23,055 and 23,000,” said Anand James, Chief Market Strategist at Geojit Financial Services.
Sumeet Bagadia’s Stock Picks
Sumeet Bagadia, Executive Director at Choice Broking, recommends buying these five intraday stocks in the cash segment:
- Gravita India
- Buy at: ₹1,715
- Target Price: ₹1,800
- Stop Loss: ₹1,650
- EMS Limited
- Buy at: ₹769.05
- Target Price: ₹810
- Stop Loss: ₹745
- Pondy Oxides & Chemicals
- Buy at: ₹1,038.5
- Target Price: ₹1,090
- Stop Loss: ₹1,000
- NIIT
- Buy at: ₹121.15
- Target Price: ₹127
- Stop Loss: ₹117
- AstraZeneca Pharma India
- Buy at: ₹7,067.6
- Target Price: ₹7,444
- Stop Loss: ₹6,800
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
