Stock Market Today, After Union Budget 2026
The day, Sunday, February 1, turned into a trading day for us. The stock market began its wild ride after Finance Minister Nirmala Sitharaman presented her ninth budget. I watched my screen as the Sensex dropped more than 2,300 points from its daily peak, while the Nifty 50 crashed to 24,571.75, my heart almost stopped. The culprit? The dreaded STT increase on Futures and Options.
Every trade suddenly became harder to handle. Futures rose from 0.02% to 0.05%, options premiums jumped to 0.15%, and exercising options became more expensive. I could almost hear fellow traders across the country groaning loudly.
The government may aim to moderate trading volumes, but our screens looked like a battlefield. Every click, every trade suddenly carried extreme importance.
Traders, grab your coffee, tighten your grip, and brace for more market turbulence. This budget still has surprises in store!
Stock Market Today Update at 12:50 PM
- Sensex: 81,322.45, 1,243.91 (−1.51%)
- Nifty 50: 24,973.95, 444.95 (−1.75%)
The Indian stock market witnessed a sudden, sharp fall in intraday trade on Sunday after Finance Minister Nirmala Sitharaman presented her ninth consecutive budget, unveiling measures aimed at accelerating economic growth while maintaining fiscal prudence.
Why Is The Stock Market Falling?
All traders glued to their screens today will give the same answer: STT is the main culprit. The proposed hike in the Securities Transaction Tax hit Futures & Options like a bolt from the blue. The transaction tax we pay on every stock trade now feels far more burdensome. The Finance Minister’s announcement of higher STT on F&O trades triggered immediate panic across trading floors. For traders, the math is simple, higher taxes mean thinner profit margins and tougher trades. A single announcement with seemingly small percentage changes has forced us to reassess every strategy. The market has reached a point where even hitting “buy” feels expensive, making traders pause before every move.
What Is the STT Hike?
What disruptions created the current market conditions that have pushed traders into panic mode? The Finance Minister has rewritten the cost sheet for derivatives trading. The tax on futures contracts has increased from 0.02% to 0.05%, while options premiums now attract a 0.15% tax, up from 0.1%. The tax on exercising options has also risen to 0.15%, from the earlier 0.125% STT.
These may look like minor percentage changes on paper, but they have a significant financial impact on traders. Rising transaction costs are squeezing margins and making strategies harder to execute. The F&O market is now facing a tax reality check, one that every market participant must confront.
The Finance Minister, Nirmala Sitharaman Said-
“I propose to raise the STT on Futures to 0.05% from the present 0.02%. STT on options premium and exercise of options are both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively,” said FM Sitharaman.
What Happend In Stock Market Today?
So, what did the market say after the budget mic dropped? It sold, hard. What was the market’s reaction to the budget announcement that politicians hailed as a major event? It fell flat. The sharp drop in the Sensex to 81,322.45 and the Nifty 50 to 24,973.95 by 12:50 PM made one thing clear: traders didn’t need time to think, they reacted instantly. The STT hike hit emotions, not spreadsheets.
The big question traders now face is simple: adapt or step back. The market is holding its breath as traders recalculate costs and rework strategies. The next move will unfold in the coming trading sessions. Until then, brace yourself, volatility isn’t done yet.
(With Inputs From ANI)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
