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.
Capital Market Stocks Crash On STT Hike Announcement
The STT hike announcement triggered violent reaction in capital market stocks such as Multi Commodity Exchange (MCX), Angel One, BSE, Central Depository Services Limited (CDSL), Nuvama Wealth Management, and other related stocks.
Commodities derivatives trading platform MCX crashed up to 11.95 per cent, brokerage firm Angel One tumbled 8.62 per cent, stock exchange BSE plunged 8.12 per cent, wealth management firm Nuvama fell 7.33 per cent, and depository services provider CDSL declined 6.76 per cent.
Rs 9.26 Lakh Crore Wiped Out Amid Broad-Based Sell-Off
Broader market indices mirrored the rout in the benchmarks and fell between 2 and 3 per cent. Nifty Midcap 100 slipped 2.24 per cent, Nifty Smallcap 100 dipped 2.73 per cent, and Nifty 500, which represents more than 92 per cent free float market cap of all NSE-listed stocks, registered 2.03 per cent fall.
Amid the broad-based sell-off, investors saw a cumulative erosion of nearly Rs 9.26 lakh crore in market capitalisation during the session.
As a result, the total market capitalisation of all BSE-listed companies declined to Rs 450.61 lakh crore by the close of trade.
Nifty 50: Top Gainers & Losers
Among the worst performers in the Nifty 50 index were Bharat Electronics (-6.02 per cent), Hindalco (-5.78 per cent), ONGC (-5.50 per cent), State Bank of India (-5.31 per cent), and Adani Ports (-5.06 per cent). Coal India, Jio Financial Services, Nestle India, ITC, Tata Consumer, NTPC and Adani Enterprises fell between 4 and 5 per cent each.
From the 50-share index, a total of 44 stocks closed in the red.
Among the six gainers, were Wipro, which gained 2.12 per cent, Max Healthcare, which rose 1.82 per cent, followed by Tata Consultancy Services and Cipla, which advanced by 1.74 per cent and 1.44 per cent, respectively. Sun Pharma and Infosys also ended the day in green.
This is a developing story...
