Budget 2026: Stock Markets Sink as STT Pain Stokes Fear

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A slew of tax proposals linked with stock markets jolted the Dalal Street on the Budget Day

By S JHA

Mumbai, February 1, 2026 — Finance Minister Nirmala Sitharaman justified raises STT on options trading, saying that the Hindi word for such activity is “Satta (gambling).” The markets read the mindset of the government and went diving on Sunday.

Both Sensex and Nifty closed the day with deep cuts. Stocks were hammered. Defence and Railway scrips bled badly. Barring IT scrips, most of the sectors bore the brunt of bear play on Budget Day in the street.

“From a technical standpoint, the Budget Day movement unfolded at a crucial juncture. The Nifty was hovering around its 200-day SMA on the daily chart after spending seven sessions consolidating within a broad 24,900–25,500 range,” said Angel One in a note shared with clients. It stated that “while the index did attempt a range breakout, it unfortunately was on the downside, tilting the near-term bias in favour of bears.”

“Going ahead, the 25,000–25,200 zone is likely to act as an immediate supply zone. Only a decisive rebound above 25,400–25,500 would revive optimism among the trader’s fraternity,” added the Delhi-based brokerage.

It noted that “Nifty on the downside may find initial support around 24,600–24,500. A breach below this zone would significantly weaken the chart structure, potentially dragging the index towards 24,300 and eventually the psychological 24,000 mark,” added Angel One.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)