Stock Market's Mood Swings... Sudden Surge After Budget Day Crash

The stock market witnessed a sharp decline on the last trading day, Sunday, with the Sensex and Nifty crashing. The announcement of an increase in the Securities Transaction Tax (STT) in the budget caused a major upheaval. However, on Monday, after opening sluggishly, the Sensex and Nifty recovered from the budget's impact and suddenly gained momentum. After opening in the red zone, the BSE Sensex rose by more than 450 points, while the NSE Nifty also followed suit, crossing the 24,900 level. However, after touching this level, the index's pace seemed to slow down.

Budget Spoiled the Market's Mood

On Sunday, when the country's Union Budget was presented, Finance Minister Nirmala Sitharaman announced an increase in the Securities Transaction Tax (STT), and immediately afterward, the Sensex and Nifty crashed. The 30-share Sensex of the Bombay Stock Exchange fell by about 2400 points. The Nifty-50 of the National Stock Exchange also plummeted, falling by more than 750 points. Amidst this market turmoil, investors lost Rs 11 lakh crore.

Sluggish Start, Then Gained Momentum

Looking at the trading activity in the stock market on Monday after the budget, the BSE Sensex opened at 80,555, down from its previous close of 80,722, and then slipped further to 80,480. But just a few minutes after this initial decline, the market's direction changed, and the Sensex surged by 466 points to reach the 81,211 level. Is this the reason for the market recovery?

Regarding the reasons behind the sudden surge in the stock market, it can be assumed that the market has now understood the pros and cons of the announcements made in the budget. The increase in STT (Securities Transaction Tax) is likely to have less impact on ordinary and long-term investors, while the burden will fall most heavily on F&O traders and those who conduct frequent transactions. This improved sentiment, and several large companies whose shares surged also supported the market.

These stocks supported the market

Now let's talk about the stocks that played a crucial role in giving a sudden boost to the falling market. Looking at these Top 10 Stocks, Adani Ports (3.30%), Asian Paints (2.50%), LT (2.30%), and Reliance (1.35%), all included in the BSE large-cap category, were trading higher. In addition, HP (5%), GMR Airport (3.30%), Bharat Forge (2.10%), and Dixon (2%), included in the mid-cap category, were also trading higher.