Stock Market Today: Nifty, Sensex See Worst Budget-Day Fall In Six Years As STT Hike Weighs On Sentiment

Stock Market Today: Domestic equity benchmarks ended a volatile Budget-day session in the red on Sunday, February 1, 2026, extending their losing streak to a second consecutive session.

The Nifty 50 settled 495.20 points, or 1.96 per cent, lower at 24,825.45, while the Sensex declined 1,546.84 points, or 1.88 per cent, to close at 80,722.94. The fall marked the worst Budget-day performance for both indices since 2020.

In the 2020 Budget session, the Nifty 50 had slid 2.12 per cent, while the Sensex had fallen 2.09 per cent.

The Union Budget 2026 delivered an unexpected jolt to Dalal Street after Finance Minister Nirmala Sitharaman announced a sharp increase in the Securities Transaction Tax (STT) on derivatives trades. The decision, which is aimed to curb excessive speculation in the futures and options (F&O) segment, unsettled market sentiment and triggered a sharp sell-off in equities, while raising concerns across the broking and exchange ecosystem.

Under the Budget proposals, STT on futures contracts has been raised from 0.02 per cent to 0.05 per cent, and STT on option premiums has been hiked from 0.10 per cent to 0.15 per cent.

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