VIX Surges Post-Budget: Markets Brace for Volatility Amid STT Hike

• India VIX, a measure of market volatility, jumped nearly 11% to 15.09 after the Union Budget, indicating traders expect continued fluctuations.
• Sensex crashed over 2,370 points and Nifty 50 plunged nearly 750 points post-Budget speech, with VIX hitting an 8-month high of 16.11 intraday.
• Analysts like Pranav Koomar and Kalp Jain suggest a high VIX signals uncertainty regarding macroeconomic indicators, fiscal policies, and global factors, not necessarily a bearish outlook.
• The market crash was largely attributed to Finance Minister Nirmala Sitharaman's decision to raise STT on futures from 0.02% to 0.05%, making derivative trading more expensive.
• The STT hike, coupled with a lack of incentives for foreign investors, is expected to cool derivative activity and potentially reduce trading volumes.

Why It Matters: Post-Budget VIX surge and market crash signal heightened volatility due to STT hike and investor caution.