Union Budget 2024: Top Winners and Losers

The Indian stock market experienced significant fluctuations on Budget day, with equity benchmarks oscillating between gains and losses. The bearish trend intensified during Finance Minister Nirmala Sitharaman’s budget speech, but the market eventually recovered to close flat. The BSE Sensex fell by 73 points to 80,429, while the Nifty dropped 30 points to settle at 24,479.05, marking the third consecutive session of losses.

Throughout the session, the 30-share Sensex plunged 1,278 points intraday, reaching a low of 79,224. From its peak of 80,766, it dropped as much as 1,542 points. Similarly, the NSE Nifty fell by 508 points from its high of 24,582 to hit a low of 24,074.

The market experienced sharp volatility as investors reacted to budget announcements, particularly the proposed increase in capital gains taxes. Investor sentiment was shaken when the FM proposed higher short- and long-term capital gains taxes. Nevertheless, the market made a strong recovery as investors absorbed the budget report, which included tax exemptions and customs duty reductions, aiding the recovery of consumer durables and FMCG stocks from their lows.

In the BSE Sensex pack, 11 out of 30 stocks closed in the green, led by Titan, ITC, Adani Ports, NTPC, and Infosys. In contrast, L&T, Bajaj Finance, State Bank of India, Axis Bank, and HDFC Bank were the top five laggards.

Top Five Winners in the Sensex pack on Budget Day:

Titan Company: The Tata Group company was the top performer, rising 6.6% after the FM announced a cut in customs duty on gold and silver to 6% in the Union Budget 2024. The Basic Custom Duty (BCD) on gold and silver was reduced from 10% to 6%, and with the unchanged 5% AIDC, the total import duty on these metals decreased from 15% to 11%.

ITC: The conglomerate gained 5.52%, making it the second-best performer among the top 30 Sensex shares. The stock saw strong buying interest after the FM announced no changes to tobacco taxation in her budget speech.

Adani Ports and SEZ: This Adani group stock rose 2.83% as the government emphasized shipbuilding and shipping reforms in the Union Budget. Experts estimate the budgetary proposals to unlock a market potential of ₹12 lakh crore, with GST simplification and standardization aimed at boosting export competitiveness and reducing logistics costs, thereby enhancing India’s shipbuilding and repair industry.

NTPC: The PSU stock climbed 2.36% following the FM’s announcement of a joint venture (JV) between NTPC and Bharat Heavy Electricals Ltd (BHEL) for an 800 MW ultra super critical thermal power plant.

Infosys: The share price of India’s second-largest software exporter increased by 1.46%, continuing its five-session rally following strong June quarter earnings. The company reported a 7.1% year-on-year rise in net profit and a 3.6% annual revenue growth.

Also, check Web-stories on Top Gainers & Losers

Top Five Losers on Budget Day:

Larsen and Toubro (L&T): The engineering and construction giant was the biggest loser, with its share price dropping 3.10%. The stock experienced heavy selling after the FM kept infrastructure capex unchanged from the interim budget. In February, the interim budget had proposed an 11.1% year-on-year increase in capex to ₹11.11 lakh crore.

Bajaj Finance: The NBFC arm of the Bajaj group was the second-worst performer, declining by 2.18%. The stock fell as investors took profits following the release of the company’s June quarter earnings report.

State Bank of India (SBI): The largest commercial lender in the country saw its shares slide 1.65% post-Budget announcements, in line with other major banking peers, as the budget did not include significant sectoral reforms.

Axis Bank: Shares of this private sector lender dropped 1.62% on Budget day, with investors booking profits in banking stocks due to the budget’s lack of notable sectoral developments.

HDFC Bank: The largest private sector lender in India saw its shares fall by 1.39% amid profit-taking after reporting robust June quarter earnings. The decline was also due to broad-based selling in banking stocks.