Budget 2026 Shakes Markets: STT Hike, Borrowing Spook Investors

• Benchmark indices Sensex and Nifty 50 fell over 1% after Finance Minister Nirmala Sitharaman presented Budget 2026.
• A significant concern is the up to 150% increase in Securities Transaction Tax (STT) on derivatives, raising fears of reduced trading activity.
• Samir Arora of Helios Capital criticized the STT hike, noting India's underperformance and currency depreciation, expecting further market falls.
• The government's record borrowing plan of ₹17.2 lakh crore for 2026-27 is expected to push up bond yields, impacting PSU bank stocks.
• While some experts like Madhu Kela and Navneet Munot acknowledge the STT impact, they highlight other structural positives like job creation and potential buyback tax changes.

Why It Matters: Budget 2026's STT hike and high borrowing plan caused market jitters, despite some long-term positives.