Budget 2026, Feb. 1 -- The Indian stock market witnessed a sudden, sharp fall of up to 3% in intraday trade on Sunday, February 1, after Finance Minister Nirmala Sitharaman proposed a steep increase in Securities Transaction Tax on derivatives. STT on futures was raised to 0.05% from 0.02%, while STT on options transactions was increased to 0.15% from 0.01% earlier. However, markets later recovered part of the losses to close around 2% lower.

She stated in her speech, "I propose to raise the STT on Futures to 0.05% from the present 0.02%. STT on options premium and exercise of options are both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively," the FM said in her budget speech.

This means for every Rs...