![Stock Market Update: Decline in Indian Markets After Tax Increase; Rupee Hits Record Low](https://media.newstracklive.com/uploads/business-news/stock-market/Aug/17/big_thumb/buySell4-770x433_59953f3a4f0f9.jpg)
Indian stock markets experienced a significant drop on Tuesday after the government proposed an increase in taxes on capital gains and derivatives trading. The NSE Nifty 50 and S&P BSE Sensex fell by approximately 1% each, closing at 24,225 and 80,024, respectively. Meanwhile, the Indian rupee sank to an all-time low against the US dollar, reaching 83.69.
Throughout the day, market indices fluctuated as Finance Minister Nirmala Sitharaman unveiled the budget proposals for 2024-25. Despite the overall decline, consumer stocks showed resilience. They saw a 2% increase following the government's decision to allocate 1.52 trillion rupees for agriculture and related sectors. Notable gains were observed in agriculture stocks such as Kaveri Seeds, Mangalam Seed, and Dhanuka Agritech, which surged between 4.4% and 10.5%. Similarly, fisheries stocks like Avanti Feed and Coastal Corp rose by 4.3% and 2.3%, respectively, due to financial support promised by the government.
Conversely, capital goods stocks suffered losses. Companies such as Larsen & Toubro, ABB India, Thermax, and Siemens saw declines ranging from 1.5% to 5%, following the government's unchanged infrastructure spending plans. Larsen & Toubro was notably the largest loser in the Nifty 50 index.
Post Budget presentation, Commerce and Industry Minister Piyush Goyal revealed that the recent Budget decision to reduce the import duty on gold to 6% is designed to enhance domestic manufacturing and boost jewelry exports. This adjustment is expected to help combat smuggling and provide relief during the peak marriage season, when gold demand is high.
Additionally, the Budget has abolished the angel tax for all investor categories, aiming to strengthen the startup ecosystem. Angel tax, which is a tax on funds raised by unlisted companies if their valuation surpasses the fair market value, had been a hurdle for emerging entrepreneurs. The removal of this tax is anticipated to encourage the growth of new businesses and support aspiring entrepreneurs.
Recent Updates:
Budget 2024: LTCG Tax Raised to 12.5%, Markets React with Sharp Decline
What’s Cheaper and What's Costlier in the BUDGET? Here's the list
BUDGET 2024-25: Rs 26,092 Cr Allocated to Empower Women and Children