Sensex declined by 233 points in early trade while Nifty dipped 73 points today, one day after Finance Minister Nirmala Sitharaman presented the 2024 Union Budget.
The rupee was trading in a narrow range and fell 1 paisa to 83.70 against the US dollar in early trade on Wednesday, weighed down by a weak risk appetite and dollar demand from importers.
Forex traders said the increase in capital gains tax and removal of indexation benefits announced in the FY25 Budget on Tuesday was the main reason for dollar buying as foreign investors sold stocks.
At the interbank foreign exchange market, the local unit opened at 83.69, and touched an early low of 83.70, registering a fall of 1 paisa from its previous close.
On Tuesday, the rupee declined 3 paise to 83.69 against the US dollar, after the government raised tax rates on capital gains in the FY25 Budget.
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