Budget 2026: STT hike drives Nifty50, Sensex plunge
Budget 2026: STT hike drives Nifty50, Sensex plunge
Market tumbles after Budget 2026 as STT hike on F&O trades triggers a broad selloff in Sensex and Nifty50, reshaping investor sentiment.
Indian equity benchmarks plunged on Budget Day after the finance minister announced a hike in Securities Transaction Tax on Futures and Options trades as part of Budget 2026. The move to widen the tax base rattled investors and sparked a broad-based selloff across sectors.
In Mumbai, the Sensex tumbled around 1,500 points, while the Nifty50 slid into the red, signaling a sharp reversal from any intraday gains. The day’s losses left the market facing its worst Budget Day in six years and wiping out roughly ₹10 lakh crore in market value.
Analysts say the STT hike on F&O trades was intended to curb speculative activity and shore up tax receipts. But traders and fund managers warned the policy could raise costs for participants and temper short-term liquidity, at least in the near term.
With global cues mixed and earnings season ahead, investors are expected to reassess risk and positions. Market watchers say clarity on implementation timetables and any exemptions will shape how the tape behaves in coming sessions.
Overall, the episode underscores how policy shifts at Budget time can ripple through equities, influencing sentiment and trading patterns for weeks to come.
