- Indices opened flat but slipped after Budget announcements.
- STT on F&O futures doubled; options premium tax raised.
- Higher borrowing outlook pressures banks; select sectors emerge as winners.
The Sensex Nifty fall after Budget 2026 followed an initially steady start to the special Sunday session, with the Sensex touching 82,726 and the Nifty nearing 25,357 intraday. Sentiment turned negative as investors digested tax changes for derivatives traders and signals of elevated government borrowing.
STT Hike Hits Derivatives-Linked Stocks
The Budget doubled Securities Transaction Tax (STT) on F&O futures to 0.05% (from 0.02%) and raised options premium tax to 0.15% (from 0.1%). The move, aimed at curbing excessive speculation, raised cost concerns for traders and broker platforms.
Likely impacted:
- BSE Limited
- Angel One
- Nuvama Wealth Management
- Groww (unlisted)
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Higher Borrowing Weighs on Bank Sentiment
Signals of higher market borrowing raised concerns over liquidity and bond yields, which could dent treasury income for banks in the near term.
Sentimentally weak:
- State Bank of India
- Bank of Baroda
- Punjab National Bank
Despite this, fundamentals such as asset quality and growth outlook remain supportive.
Budget Tailwinds for Construction Equipment Makers
A targeted push for domestic construction machinery manufacturing benefits:
- Action Construction Equipment
- Escorts Kubota
Their cranes, forklifts, and earthmovers stand to gain from localisation incentives.
Data Centre, Electronics, and Biopharma Winners
Tax holidays for foreign cloud providers using Indian data centres boost:
- Anant Raj Limited
- Techno Electric & Engineering
Electronics manufacturing allocation of ₹40,000 crore aids:
- Amber Enterprises
- Dixon Technologies
The ₹10,000 crore “Biopharma Shakti” program favours:
- Biocon
- Sun Pharmaceutical Industries
Rare Earth Corridors Boost Mining Plays
The rare earth corridor push in Odisha and Andhra Pradesh supports:
- NMDC Limited
- Gujarat Mineral Development Corporation
ALSO READ| Budget 2026: Rare Earth Corridors India Plan Targets Import Dependence
Market Mood: Volatile but Selectively Positive
While headline indices slipped on tax and borrowing concerns, sector-specific announcements created pockets of optimism. Traders expect near-term volatility as markets reprice derivatives activity and liquidity expectations post-Budget.
Disclaimer:
The information provided in this blog is for educational and informational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instruments. Stock market investments are subject to market risks. Past performance is not indicative of future results. Readers are advised to consult a qualified financial advisor before making any investment decisions. The author and publisher are not liable for any losses or damages arising from the use of this information.
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