Why Markets Fell Today: STT Hike in Budget Speech Sends Sensex Down 800 Points

LIVE | New Delhi: Indian equity markets turned volatile during the Union Budget presentation after the government announced a hike in Securities Transaction Tax (STT) on futures to 0.05%, sparking sharp selling across benchmark indices.

📉 Budget LIVE: Market Reaction

12:38 PM IST:
Finance Minister Nirmala Sitharaman announces an increase in STT on futures to 0.05% during her Budget speech.

12:40 PM IST:
Markets react instantly to the announcement. Sensex slips over 500 points, while Nifty drops below 21,800, as traders rush to cut derivative positions.

12:42 PM IST:
Selling pressure intensifies. Sensex tumbles 792 points to 71,384, while the Nifty falls 238 points to 21,615. Banking, IT, and capital goods stocks lead the decline.

12:44 PM IST:
Volatility spikes in the derivatives segment as investors assess the impact of higher transaction costs on futures trading volumes.

12:46 PM IST:
Market breadth weakens significantly, with declining stocks outnumbering advances on both NSE and BSE.

📊 Sector Check

12:48 PM IST:

  • Banking and financial stocks remain under pressure
  • IT stocks extend losses amid global uncertainty
  • Mid- and small-cap indices trade mixed as traders stay cautious

👀 What Investors Are Watching

12:50 PM IST:
All eyes remain on further policy announcements in the Budget speech, particularly around capital markets, taxation, and fiscal discipline. Traders expect continued volatility through the remainder of the session.