Sunday, January 05, 2025 | 04:49 PM ISTEN Hindi

Sensex sinks 398 pts, Nifty below 16,950 as STT hike, global cues weighs

CLOSING BELL: The debt mutual fund (Debt MF) investors will no longer receive the long-term capital gain tax benefit. Moreover, the Centre also hiked the STT on the sale of F&O contracts

SI Reporter New Delhi

Sensex sinks 398 pts, Nifty below 16,950 as STT hike, global cues weighs

CLOSING BELL

Stock market highlights: Equity markets turned sharply lower in the fag-end of the session as investors digested amendments to Finance Bill, 2023. Besides, selling in US index futures and European markets also weighed on the sentiment.

Back home, under the Bill approved by the Parliament, the debt mutual fund (Debt MF) investors will no longer receive the long-term capital gain tax benefit. They will be taxed like bank deposits. It will be applicable from April 1. READ MORE

The Centre also hiked the securities transaction tax (STT) on the sale of future and option contracts by up to 25 per cent. READ MORE

The S&P BSE Sensex closed 398 points, or 0.69 per cent, lower at 57,527 levels, while the Nifty50 shut shop at 16,945, down 132 points or 0.77 per cent.

The broad-based selling was led by metal, PSU banks, and realty indices, which were down over 2 per cent each. Individually, Bajaj Finserv (down 4 per cent), Adani Enterprises, Adani Ports, Hindalco, Bajaj Finance, ONGC, Hero MotoCorp, Tata Steel, Coal India. Titan, HDFC Life, Reliance Industries, M&M, JSW Steel, Maruti Suzuki, and L&T.

In the broader markets, the BSE MidCap and SmallCap indices declined around 1.4 per cent each.

4:13 PM

COMMENT:: Volatility in European markets fuel weakness

"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."

- Vinod Nair, Head of Research at Geojit Financial Services

4:09 PM

Nifty: The NSE benchmark could drop to 16,750

"Nifty slipped below the crucial level of 16,950 as the bears gained control of the market. Furthermore, the Nifty fell after a few days of consolidation, indicating an increase in bearish bets. The momentum indicator RSI is in bearish crossover. In the short term, the index may fall, with a potential drop to 16,750. On the higher end, resistance is visible at 17,200."

- Rupak De, Senior Technical Analyst at LKP Securities

4:09 PM

Bank Nifty:: Momentum in favour of the bears; sharp slide possible below 39,000

"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 40,000 remains in a sell on rise mode. The immediate support on the downside is at 39,000 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."

- Kunal Shah, Senior Technical Analyst at LKP Securities

4:04 PM

GQG Partners' investment in Adani Green Energy soars 100% in 15 days

Imvestment made by GQG Partners in Adani Green Energy have fetched the Australia-based asset management company over 100 per cent returns in just 15 trading sessions. GQG Partners have earned over Rs 2,900 crore or 104 per cent during the period. READ MORE

4:02 PM

Sundaram-Clayton trades ex-date for scheme of arrangement; stock cracks 20%

The board at its meeting held on February 9, 2022 had approved the Composite Scheme of Arrangement of the company for issue of bonus NCRPS and demerger of manufacturing undertaking. READ MORE

4:00 PM

Two smallcap stocks touch new highs; have zoomed up to 49% in past three months

In the past three months, Vardhman Special Steels has zoomed 49% and KPIT Technologies has surged 41% as compared to a 3% decline in the S&P BSE Sensex. READ MORE

3:59 PM

Campus Activewear tanks 8% after over 9% equity changes hand on NSE

According to media report private equity firm TPG had plans to sell 7.62 per cent stake worth Rs 800 crore in Campus Activewear via a block deal at Rs 345 per share. READ MORE

3:56 PM

LIC plans investment exposure caps post Adani share rout: Reports

After the Adani group lost over $100 billion in valuation post scathing allegations by U.S.-based Hindenburg Research, state-run LIC was criticized for having over $4 billion exposure. READ MORE

3:55 PM

Govt deals tax blow to debt mutual funds, AMC stocks tumble

In a move to remove the tax advantage enjoyed by debt mutual funds over bank fixed deposits, the government has proposed to tax gains arising from debt MFs at the investor's slab rate, irrespective of the investment period. READ MORE