The benchmark of BSE 'Sensex' fell for the fourth consecutive session on Wednesday as investors dumped financial and banking shares after the government announced a hike in securities transaction tax (STT) and short-term capital gains tax (STCG) on the sale of such equities. The 30-share BSE Sensex ended 280.16 points, or 0.35 percent, down at 80,148.88, with 19 components falling and 11 advancing. On the day, the index had fallen 678.53 points, or 0.84 percent, to 79,750.51.

The NSE Nifty declined 65.55 points, or 0.27 percent, to 24,413.50. Bajaj Finserv plunged 2 percent from its previous close as the company's first-quarter results failed to cheer investors. Hindustan Unilever,  Kotak Mahindra Bank, Bajaj Finance,  Axis Bank, Adani Ports, and State Bank of India were the other major laggards. However, Tech Mahindra, ITC, NTPC, Tata Motors, and Sun Pharma were among the gainers.

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ITC rose to a 52-week high in the pre-budget session, with the conglomerate announcing no new taxes on its tobacco products. The stock rose 0.42 percent for the second consecutive day. The benchmark indices ended marginally lower after swinging between gains and losses on Tuesday as the government proposed a hike in STT on futures and options contracts in the Union Budget for 2024-25.

Major Asian markets were trading lower, with Seoul, Tokyo, Shanghai, and Hong Kong falling. European markets were also trading flat. The U.S. markets ended slightly lower on Tuesday. According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 2,975.31 crore on Tuesday. Brent crude, the global benchmark, rose 0.75 percent to $81.62 per barrel.

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Rupee falls

The rupee depreciated by 1 paise to hit an all-time low of 83.70 (provisional) against the U.S. dollar on Wednesday due to weak investor sentiment amid risk aversion triggered by the Federal Reserve's aggressive policy tightening stance. Overseas traders said the capital gains tax hike and removal of indexation benefits announced in the FY25 Budget on Tuesday are the main reasons foreign investors are selling their holdings to buy dollars.

(With PTI's Input)