MARKET RECOUPS AFTER PLUNGING 1%

Sensex and Nifty fell over 1% after Union Budget 2024, with Sensex dropping more than 1,200 points.

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India’s benchmark equity indices, the BSE Sensex and Nifty 50, ended slightly lower on Tuesday, recovering from an over 1% drop earlier in the day following the announcement of the Union Budget 2024. The session saw significant volatility as the market reacted to proposed changes in tax policies and sectoral allocations.

The initial market reaction was negative as Finance Minister Nirmala Sitharaman announced higher taxes on capital gains and trading derivatives. The Sensex and Nifty both fell by about 1%, with the Sensex plummeting over 1,200 points during the session. At one point, the indices were trading at 80,024 and 24,225, respectively. The Indian rupee also dropped to a record low of 83.69 against the US dollar, reflecting market apprehensions about the new fiscal policies. However, as the day progressed, several factors contributed to stabilising the market.