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.