is stock market open today

STT Shock in Budget 2026

by

Budget 

“Speculation Gets Costlier, Discipline Gets Cheaper.”


Union Budget 2026-27 delivered a major jolt to Dalal Street as Finance Minister
Nirmala Sitharaman announced a sharp hike in
Securities Transaction Tax (STT) on futures and options.
The move triggered an instant market sell-off and reignited debate around
speculation, revenue, and retail trader protection.

📌 Table of Contents

📊 What Changed in STT?

The government announced higher STT rates across the derivatives segment,
making futures and options trading significantly more expensive.

Segment Old STT Rate New STT Rate
Futures 0.02% 0.05%
Options (Premium) 0.10% 0.15%
Options (Exercise) 0.125% 0.15%

These changes aim to discourage excessive speculation, especially among
retail traders active in F&O markets.

📉 Market Reaction: Sensex Crashes

Markets reacted instantly after the announcement:

  • Sensex plunged 1,547 points
  • Heavy selling in banking and brokerage stocks
  • F&O-heavy traders rushed to cut positions

Higher transaction costs raised fears of lower trading volumes,
especially in the derivatives segment that dominates daily turnover.

💰 Why the Government Raised STT

STT collections fell short of expectations despite booming derivatives volumes:

  • FY26 STT target: ₹78,000 crore
  • Collected till Jan 1: ₹45,000 crore
  • Estimated FY26 total: ₹57,000 crore (25% shortfall)

The hike is designed to plug this gap and extract more revenue from
high-frequency and high-volume trading activity.

🧠 Experts & Industry Reactions

Market veteran Shankar Sharma supported the move, calling
unrestricted F&O trading a “poison” for retail investors and welcoming
steps to reduce speculative addiction.

Brokers, however, criticized the hike and demanded:

  • Restoration of Section 88E tax rebates
  • Clarity on physical settlement-related STT

Some analysts believe the real target is high-frequency and algorithmic traders
rather than individual investors.

⚙️ Other Key Budget Reforms

Alongside STT changes, the budget introduced corporate tax simplifications:

  • MAT reduced from 15% to 14% (effective April 2026)
  • No new MAT credit accumulation
  • Push toward simplified new tax regime

Direct tax collections hit ₹17.78 lakh crore by February 10,
up 14.69% year-on-year, with STT collections surging 65%.

⚠️ What This Means for Traders & Markets

The STT hike could:

  • Reduce F&O volumes
  • Protect novice traders from heavy losses
  • Increase trading costs across the board

Meanwhile, the Supreme Court is examining the constitutional validity of STT,
keeping the debate alive. While sectors like electronics rallied after
₹40,000 crore allocations, derivatives markets now face strong headwinds.

 

Budget 2026 walks a tightrope—boosting revenue
and curbing speculation while risking short-term market volatility.
For traders, discipline just became more expensive.

 

Read more

Nifty 50 on Edge Before Budget 2026

by

Nifty 

“Budget Day, Big Moves — Markets Hold Their Breath”

The Nifty 50 ended Friday on a cautious note as investors stepped back ahead of the highly anticipated Union Budget 2026. While domestic benchmarks slipped, GIFT Nifty signals a flat-to-muted opening for Sunday, February 1, reflecting uncertainty before the Finance Minister’s big announcements.

Table of Contents

Recent Market Performance

On January 30, the benchmark Nifty 50 closed at 25,320.65, slipping 98.25 points (0.39%) from the previous close of 25,418.90. The index oscillated between an intraday low of 25,213.65 and a high of 25,370.70.

Trading activity remained healthy with volumes of 5,083.89 lakh shares and a turnover of ₹40,771.81 crore. Despite near-term pressure, Nifty has delivered an 8.91% return over the past year, though it remains down 3.16% YTD.

Key Index Metrics

  • P/E Ratio: 22.04
  • P/B Ratio: 3.44
  • Dividend Yield: 1.30%
  • Free-Float Market Cap: ₹115.17 lakh crore

Market breadth stayed balanced with 25 stocks advancing and 25 declining. Heavyweights like Reliance Industries, HDFC Bank, and Bharti Airtel continued to dominate index movement.

Market Outlook & Levels to Watch

Early Sunday trade in GIFT Nifty hovered near 25,420, hinting at a flat opening as traders await Budget cues. The index recently snapped a three-day rally due to FII selling, rupee weakness, and pressure in banking and metal stocks.

Technical levels to watch:
Support is placed at 25,200–25,300 near the 200-day EMA, while immediate resistance stands at 25,500. A decisive move beyond this range could set the tone for the coming weeks.

Union Budget 2026: What Markets Expect

Finance Minister Nirmala Sitharaman presents the Union Budget today, with investors tracking announcements on capital expenditure, tax reforms, rural spending, and consumption-led growth.

Sectors like agriculture, digital infrastructure, NBFCs, and manufacturing are in focus. Pharma and auto stocks reported mixed Q3 earnings, while metals weakened ahead of the event. Analysts expect heightened volatility but policy continuity.

Global Market Cues

Global sentiment remains mixed. US Dow futures fell 0.40% and Nasdaq futures slid 0.95%, while Europe’s FTSE gained 0.51%. Asian markets were uneven with Nikkei down 0.10% and Hang Seng slipping 1.98%.

Persistent FII outflows and global uncertainty, including developments around US Fed leadership, continue to weigh on Indian equities.

With Budget 2026 in focus, Nifty stands at a crucial crossroads. Traders should brace for sharp swings as policy announcements decide whether the index breaks higher — or slips below key support.

 

Disclaimer: Yeh views market experts ke hain and not of trueincome. Investment karne se pehle certified advisor se consult zaroor karein.

Read more