Budget 2026: STT Hike Shocks Stock Market, Futures Tax More Than Doubles

• Union Finance Minister Nirmala Sitharaman announced a significant increase in Securities Transaction Tax (STT) during the Union Budget 2026-27 presentation.
• STT on futures transactions has more than doubled, rising from 0.02% to 0.05%, while STT on options increased from 0.1% to 0.15%.
• The Nifty index reacted sharply, falling by approximately 400 points and dropping below the 25,000 level.
• This hike, combined with previous increases in STT and Capital Gains Tax, makes equity and derivatives trading less attractive for active traders.
• The government aims to curb excessive speculation in the derivatives segment to bring more stability to the market.

Why It Matters: Budget 2026's increased STT on futures and options has significantly impacted the stock market, raising concerns among traders.