Share Market Today: Sharp decline in the banking sector on July 24, 2024. The Nifty Bank index, which tracks the performance of the top banking stocks in India, experienced a significant drop.
Nifty Bank at 51,091.00 down −687.30 points 1.33% today on 24 Jul, 11:57 am IST
The budget, presented on July 23, 2024 failed to announce any major reforms for the sector, introduced changes that negatively impacted investor sentiment in the banking sector. These changes included:
Negative Market Sentiment Post-Budget: The Union Budget 2024, presented on July 23, 2024, led to negative market sentiment due to various factors such as:
- Increased Securities Transaction Tax (STT): The government increased the STT on futures and options trading, making trading more expensive for investors and potentially reducing market liquidity.
- Changes in Capital Gains Tax: Changes were made to long-term and short-term capital gains tax, which could affect investor behavior and market sentiment.
- Tax on High-Value Insurance Policies: The budget also proposed a tax on high-value insurance policies, further dampening investor sentiment.
Technical Breakdown: Both the Sensex and Nifty indices fell below crucial support levels, triggering a wave of selling pressure and accelerating the decline.
Profit Booking: After a sustained period of growth, investors took the opportunity to book profits in various sectors, further contributing to the decline.
Global Economic Concerns: Lingering concerns about the global economy, including potential interest rate hikes by central banks and geopolitical tensions, also contributed to the negative sentiment in the market.
Additional Factors:
Weak Global Cues: Negative cues from global markets, particularly from the US, also played a role in the decline of the Indian market.
FII Selling: Foreign institutional investors (FIIs) have been net sellers in the Indian market in recent times, further adding to the selling pressure.
Overall, the combination of negative market sentiment post-budget, technical breakdown, profit booking, and global economic concerns led to the sharp decline in the Banking Sector on July 24, 2024.