BSE, Angel One Shares Rebound After STT Hike Sell-Off; Groww Still Down

• BSE and Angel One shares showed recovery on Monday after an initial sell-off triggered by increased Securities Transaction Tax (STT) announced in Budget 2026.
• Finance Minister Nirmala Sitharaman's Budget 2026 included an increase in STT for futures (0.02% to 0.05%) and options (0.1% to 0.15%).
• Jefferies projects a 5% volume impact and 4% earnings impact for BSE and Groww due to the STT hike, while Bernstein notes potential hurt to high-frequency trading (HFT) profitability.
• Kotak Institutional Equities found the STT hike in futures "unreasonable" given institutional participation, suggesting lower STT on cash equities would be more beneficial.
• Citi indicates Angel One and Groww, with higher F&O revenue mix, may face marginal topline pressure, while other players like Nuvama might see minimal impact.

Why It Matters: BSE and Angel One shares recovered post-STT hike, but Groww continues to underperform amidst market volatility.