After closing on a lower note on Monday, benchmark indices Sensex and Nifty had a muted opening on Tuesday ahead of the presentation of the Union budget 2024-25 by Finance Minister Nirmala Sitharaman.
The markets have been falling for the past two days, with BSE Sensex dropping by 102.57 points or 0.13 per cent and Nifty by 21.65 points or 0.09 per cent on Monday. The dip on Monday was led by Reliance Industries which declined over 3 per cent after the company reported a 5 per cent drop in its June quarter net profit.
The downtrend continued on Tuesday morning as well, with declining nearly .20 per cent in the morning trade.
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“If there are no changes in long-term capital gains tax that will be a big relief for the market and the market is likely to react positively to that,” chief investment strategist at Geojit Financial Services V.K. Vijayakumar has been quoted as saying to Reuters.
In the past years that Nirmala Sitharaman presented the Union budget, there were mixed reactions in the markets with Nifty declining 0.13 per cent on the day of the Interim budget this year.
There was uncertainty in the markets on the day of the budget in 2023, with Sensex gaining 158.18 points while Nifty declining by 45.85 points. Sensex rose over 1,100 points during intraday trade.
Markets had reacted positively to Sitharaman's 2022 budget, with the Sensex jumping by 849.40 points, and the Nifty going up by 237 points.
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In 2021, the markets ended the day with huge gains with Sensex surging 2,314.84 points and the Nifty going up by 646.60 points. The Nifty rising by 4.7 per cent was the highest-ever gain on a budget day since 1999.
There was a huge crash in the markets in 2020, after Sitharaman presented her second budget, with Sensex crashing by 2.43 per cent and Nifty by 2.5 per cent.
Nirmala Sitharaman's first full budget in 2019 saw the markets responding negatively. Sensex ended the day with a loss of over 394.67 points and the Nifty fell by 135.60 points.