Indian equity indices ended on a lower note on Wednesday, for the second day after the government increased tax on long-term as well as short-term capital gains. Come from Sports betting site VPbet
However, reshuffling of capital gains tax is only a short-term negative surprise as the government’s strong fiscal and growth policy may attract more inflow from foreign investors, which in the long term will help hold the ground, said Vinod Nair, Head of Research at Geojit Financial Services.
The Nifty 50 fell 65.55 points or 0.27%, from its previous close, to settle the day’s trading at 24,413.50. Similarly, the BSE Sensex closed 280 points points or 0.35% lower at 80,149. While banking stocks were the major drag for the day. HDFC Bank, Axis Bank, SBI, and Kotak Bank were the major contributors pushing the indices lower.
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Sectoral Index Bucked Trend
Bank Nifty slumped 461 points or 0.89% to end the session at 51,317. However, bucking the overall markets’ sentiments, Nifty Midcap 100 added 588 points or 1.04% settling the day’s trading at 56,872.75. In the broader markets, smallcap and midcap stocks closed in the green.
Sectoral draggers
Among the sectoral indices, Nifty Bank along with Financial Services took the hit. However, Nifty Media, Oil & Gas, and Consumer Durables surged in the weak market.
“The recovery noticed from today’s low will be evident only post the monthly expiry tomorrow. At the same time, the ongoing Q1 results, which to date are muted, will decide the near-term trend,” said Nair of Geojit Financial Services.
Talking about the technical side of markets, Nifty has remained firmly above the 20-day exponential moving average (DEMA) during this consolidation, indicating that the bulls are maintaining their grip despite weakness in the banking sector, said Ajit Mishra, Senior Vice President of Religare Broking. “We recommend maintaining a positive yet cautious stance on the index until Nifty decisively breaks below 24,200. Additionally, we reiterate our preference for index majors over others and suggest monitoring position sizes.”
Bank Nifty
“The Bank Nifty continued to fall, remaining below the short-term consolidation breakdown. The sentiment might remain weak as it closed below its support level of 51,700 and its 21-day exponential moving average. A sell-on-rise approach might favor traders until the index closes above 52,000. The support is placed at 50,900, where the 50-day EMA lies. On the other hand, resistance is seen at 51,550 and 52,000,” said Rupak De, Senior Technical Analyst at LKP Securities.