New Delhi, July 29 : The week gone by was dramatic in more ways than one. Markets lost on the first four days of the week and extended losses for five consecutive days before a complete turnaround happened on Friday, which was the first day of the August futures series.

Incidentally, the Union Budget was declared on Tuesday and markets were on a losing streak before and after the announcement. Losses in the first four days of the week were covered and converted from negative to positive by much more than the losses.

The gains on Friday were 1,292 points on BSESENSEX and 429 points on NIFTY. At the end of the action-packed week, BSESENSEX ended with gains of 728.07 points or 0.90 per cent while NIFTY gained 303.45 points or 1.24 per cent to close at 24,834.35 points.

The broader markets saw BSE100, BSE200 and BSE500 gain 1.65 per cent, 1.83 per cent and 1.92 per cent respectively.

BSEMIDCAP was up 3.13 per cent while BSESMALLCAP was up 3.45 per cent. The week ended with gains in one trading session and losses in four sessions. FPIs incidentally bought on Monday and Friday and were sellers on the remaining three days.

The Indian Rupee lost seven paisa or 0.08 per cent. It closed at Rupees 83.73 to the US Dollar. Dow gained on three of the five trading sessions and lost on two. It gained 301.79 points or 0.75 per cent to close at 40,589.34 points.

One wonders whether the US markets follow India or vice-versa. However, one thing is clear there is a correlation between the two and that the same is very close. On Friday we saw a sharp rally in Indian bourses and that reversed the losses for the week and enabled markets to close in the positive. The same happened in the US as well with Dow gaining 654 points on Friday. This would be something which should be watched closely going forward.

Tuesday, the 23rd of July, saw the Union Budget being presented for the financial year 2024-2025. The Union Budget made special mention of the stock markets which have been doing very well over the last eight months or so.

In poetic justice, it had a little for everything in the market. The tax on the long-term capital gains tax was raised to 12.5 per cent. Similarly, the short-term capital gains tax was raised to 20 per cent. STT or securities transaction tax on F&O has been doubled.

Finally, the incidence of tax on buyback of shares which was earlier on the company, has now been logically shifted to the individual taxpayer and would be treated as long-term capital gains tax.