Budget Day Bloodbath: Sensex Plunges 1800 Points After FM's STT, Buyback Tax Hike
Share Market
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CNBC Awaaz•01-02-2026, 13:46
Budget Day Bloodbath: Sensex Plunges 1800 Points After FM's STT, Buyback Tax Hike
- •Finance Minister Nirmala Sitharaman announced an increase in Securities Transaction Tax (STT) on derivatives in Union Budget 2026.
- •The announcement led to a massive stock market crash, with BSE Sensex falling by 1800 points and Nifty by over 450 points, slipping below 25,000.
- •STT on options increased from 0.02% to 0.05%, and on futures from 0.10% to 0.15%, raising transaction costs for traders.
- •Shares of market infrastructure and broking companies like BSE Ltd., Angel One, and Groww plummeted over 10%.
- •Capital Gains Tax will now apply to share buybacks for all shareholders, replacing the previous dividend-like treatment and TDS deduction.
Why It Matters: Increased STT on derivatives and new capital gains tax on buybacks caused a significant stock market downturn.
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