Indian equity markets witnessed sharp volatility on Budget Day 2026, with benchmark indices tumbling as investors digested key announcements and policy signals. The Sensex plunged by over 2300 points intraday, while the Nifty 50 slipped below crucial psychological levels, reflecting widespread nervousness across Dalal Street. The sell-off unfolded during a special trading session held on the day of the Union Budget presentation, amplifying market sensitivity to fiscal cues. What Triggered the Sharp Market Fall? The steep decline was largely driven by concerns around higher transaction costs in the derivatives market. The Budget introduced an increase in Securities Transaction Tax (STT) on futures and options, a move that directly impacts high-volume traders, brokerages, and market intermediaries. As derivatives account for a significant portion of daily market turnover, even a marginal cost hike was enough to spook investors and trigger aggressive selling. Heavy Selling in Financial and Brokerage Stocks Stocks linked to market infrastructure and brokerage services bore the brunt of the sell-off. Shares of entities associated with the Bombay Stock Exchange and trading platforms fell sharply, with some counters correcting in double digits. The fear of reduced trading volumes and lower profitability led investors to exit these stocks swiftly, adding to… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
