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Below the Quote on Daily Market Commentary by Mr. Siddhartha Khemka , Head - Retail Research, Motilal Oswal Financial Services Ltd

Markets swung between gains and losses amid the Budget 2024-25 presentation. Nifty made a smart recovery from the day’s low levels and closed with a marginal loss of 30 points at 24479 levels. The volatility index declined sharply by 17% to 12.75 levels. Sector-wise it was a mixed bag. Buying was seen in the Consumer Durable, FMCG, and Pharma sectors after the government proposed incentives and policies to boost these sectors. The budget focused on employment and skilling as a theme, along with its continued investment in infrastructure. The surprise came after the government proposed an increase in long-term and short-term tax, along with an increase in STT in FNO. This rise in short-term capital gains tax from 15% to 20% will thus discourage excess trading activities, while the hike in Long-term capital gain taxes from 10% to 12.5% is sentimentally negative for the market in the near term. We believe the long-term fundamentals of India remain strong with the government walking the fiscal prudence path and reducing the target to 4.9% in FY25 and further to 4.5% in FY26.

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