Particle.news
Download on the App Store

Indian Markets Whipsaw After Budget as STT Hike Batters Capital‑Market Stocks

Analysts warn higher trading costs could cool derivatives activity, pressuring brokers, exchanges, depositories.

Overview

  • Finance Minister Nirmala Sitharaman raised Securities Transaction Tax to 0.05% on futures and 0.15% on options premium and said share buybacks will face capital gains tax for all shareholders.
  • Markets slumped on Budget day with the Sensex down roughly 2,300–2,370 points and the Nifty off about 750 points, with press reports estimating intraday investor wealth erosion of roughly ₹8–11 lakh crore.
  • Volatility persisted the next session as the Sensex briefly jumped more than 450 points and the Nifty crossed 24,900 before both gauges slipped back into losses.
  • Capital‑market names led the sell‑off: BSE fell over 15%, Groww dropped about 14% from its day’s high, Angel One slid around 10%, CDSL declined over 9%, NSDL eased nearly 3%, and IIFL tumbled about 18%.
  • Brokerage and industry voices cautioned that higher impact costs may damp F&O volumes and weigh on earnings for brokers, exchanges, asset managers and depositories.