Market Meltdown: Sensex Tanks 1,547 Points After STT Hike; Rs 10 Lakh Crore Eroded
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News18•01-02-2026, 16:07
Market Meltdown: Sensex Tanks 1,547 Points After STT Hike; Rs 10 Lakh Crore Eroded
- •Indian equity markets experienced a sharp selloff on Sunday, February 1, following Finance Minister Nirmala Sitharaman's Union Budget announcement.
- •The Sensex plunged 1,547 points (1.88%) to close at 80,722.94, while the Nifty 50 dropped 495 points (1.96%) to 24,825.45.
- •The primary trigger for the market fall was the proposed increase in Securities Transaction Tax (STT) on Futures and Options (F&O) transactions.
- •STT on futures is set to rise from 0.02% to 0.05%, and on options premium from 0.1% to 0.15%, significantly increasing transaction costs.
- •Experts like Feroze Azeez and Shripal Shah believe the STT hike will impact derivative volumes, high-frequency traders, and could lead to near-term market volatility.
Why It Matters: Indian markets crashed after the Union Budget proposed a significant hike in STT on F&O transactions.
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