Capital Market Stocks Rebound After Budget Crash; Jefferies Calls STT Hike Manageable

• Capital market stocks, including BSE and Angel One, jumped up to 4% on February 2, recovering from a post-Budget crash.
• The Nifty Capital Markets index rose over 1% to 4,438.95 after a 6% plunge the previous day.
• Finance Minister Nirmala Sitharaman increased STT on futures from 0.02% to 0.05% and on options from Rs 6.25 to Rs 10 per Rs 10,000 contract.
• Jefferies views the STT hike as a "sentiment negative" but largely manageable, predicting a 5% volume impact and 4% earnings impact for some firms.
• Citi also expects a near-term sentiment overhang and marginal decline in F&O volumes, but limited long-term behavioral change.

Why It Matters: Capital market stocks rebounded despite the STT hike, which analysts deem manageable with limited long-term impact.