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Capital gains tax hikes cause capital market stock (brokers, exchanges) to fall 5-8% immediately. But the broader market recovers within 1-2 weeks. Retail investors absorb higher taxes — daily volumes dip but recover. Focus stays on fundamentals.
Nifty 1 Day
-0.5%
Nifty 3 Days
+0.8%
Nifty 1 Week
+2.1%
Nifty 1 Month
+5.0%
Budget July 2024 raised STCG tax from 15% to 20% and LTCG from 10% to 12.5%. STT on F&O was doubled. Market fell 0.5% on Budget Day but recovered in 1 week. Capital markets stocks fell most; infrastructure continued rally.
Budget July 2024 raised STCG tax from 15% to 20% and LTCG from 10% to 12.5%. STT on F&O was doubled. Market fell 0.5% on Budget Day but recovered in 1 week. Capital markets stocks fell most; infrastructure continued rally.
Historically, L&T, DLF were among the strongest performers in the aftermath, based on real 1-week/1-month return data.
The Nifty 50 moved +2.1% in the following week and +5.0% over the following month.
Capital gains tax hikes cause capital market stock (brokers, exchanges) to fall 5-8% immediately. But the broader market recovers within 1-2 weeks. Retail investors absorb higher taxes — daily volumes dip but recover. Focus stays on fundamentals.
Regime
bull
Repo Rate
6.5%
India VIX
14.5
Data Confidence
85%