Sensex falls 780 points today, plummeting to 81,494 just minutes after Finance Minister Nirmala Sitharaman's Budget 2026 presentation. The Nifty tumbled nearly 550 points to 25,050, erasing early gains in a sharp post-budget reaction. This Sunday special trading session—rare for Indian markets—highlights the high stakes, with investors digesting key announcements like the STT hike.
STT Hike Triggers Sell-Off
The government's decision to raise Securities Transaction Tax (STT) on futures from 0.02% to 0.05% hit hardest. STT on options premiums and exercise fees jumped to 0.15% from 0.1% and 0.12%, respectively.
-
Trading costs rise, squeezing retail traders' profits.
-
Even losses now attract higher taxes, deducted directly by exchanges.
Of 30 Sensex stocks, 28 declined; only two advanced. BEL, SBI, and NTPC shed up to 4%. Public sector banks plunged 4%, the steepest sectoral drop, with metals, FMCG, IT, pharma, financials, and realty also in red. All Nifty sectoral indices fell.
Budget 2026 Fiscal Snapshot
Last year's (2025-26) income hit ₹34 lakh crore (₹26.7 lakh crore from taxes), with ₹49.6 lakh crore spent—₹11 lakh crore on capex like highways and bridges. For 2026-27, income is pegged at ₹36.5 lakh crore (₹28.7 lakh crore taxes), expenditure at ₹53.5 lakh crore.
Capex surges to ₹12.2 lakh crore from ₹11.2 lakh crore, fueling infrastructure and jobs. Santosh Agarwal, CFO of Alpha Corp, calls it a "blueprint for New Urban India," boosting Tier-2/3 cities with ₹5,000 crore annually for liveability and growth.
Expert Takes and Investor Advice
CA Arun Mantri notes: "Nothing bad in the budget except STT on F&O—short-term reaction expected, but good for equity culture." Volatility may linger, but dips offer buying chances in infra, defense, and railways.
Experts urge focusing on quality large-caps for long-term plays. FIIs sold ₹601 crore yesterday; DIIs bought ₹2,251 crore, showing domestic resilience.
This Budget 2026—Nirmala Sitharaman's ninth—matters now as markets stay open Sundays to manage gaps, avoiding Monday shocks. Investors, brace for fluctuations but eye positives like capex push amid global mixed cues (Nikkei down, Kospi up).
