Union Budget 2026 Triggers Market Sell-off Amidst State Discontent
India’s financial markets experienced a significant downturn on February 1, 2026. The Union Budget 2026-27 presentation caused a sharp market slide. This news became a top trending topic. The primary trigger was an unexpected increase in the Securities Transaction Tax (STT).
STT Hike Rattles Stock Markets
Finance Minister Nirmala Sitharaman announced a hike in STT on derivatives. This move immediately unsettled investors. The STT on futures rose from 0.02% to 0.05%. The tax on options premiums increased to 0.15% from 0.1%. For options exercise, it rose to 0.15% from 0.125%. This hike significantly increased trading costs. It particularly affected high-frequency traders and hedgers. Consequently, the market saw a substantial sell-off. The BSE Sensex fell by 1.88%. It closed at 80,722.94 points. The Nifty 50 index dropped by 1.96%. It ended the day at 24,825.45 points. This market reaction was one of the steepest on Budget day in years. Investor wealth worth approximately Rs 9.72 lakh crore was eroded. Some market watchers termed the fall a knee-jerk reaction. However, others noted significant disappointment compared to expectations. Brokerage and exchange stocks also saw sharp declines. This was due to fears of reduced trading volumes. The STT hike was aimed at curbing speculation. However, it spooked short-term traders. Many expected tax stability instead. This news quickly went viral across financial news outlets.
Chief Ministers Express Disappointment
The Union Budget also faced criticism from several state leaders. Chief Ministers of poll-bound states voiced their strong disapproval. Tamil Nadu Chief Minister M.K. Stalin called the budget a “huge disappointment.” He stated that the budget “totally defeated Tamil Nadu’s expectations.” Stalin criticized the neglect of his state’s needs. He also pointed out a lack of support for marginalized communities. West Bengal Chief Minister Mamata Banerjee slammed the budget. She labeled it “directionless and visionless.” Banerjee also called it “anti-people.” She claimed it offered “nothing for Bengal.” She alleged significant cuts in education and social security subsidies. Kerala Chief Minister Pinarayi Vijayan also criticized the budget. He stated it “exposes the Centre’s continued discrimination and neglect” towards Kerala. He felt the Finance Minister “deliberately overlooked” Kerala’s importance. Opposition parties broadly described the budget as “anti-poor” and “detached” from economic realities. They felt it prioritized corporate interests. This critical news featured prominently.
PM Modi Inaugurates Key Infrastructure Projects
Meanwhile, Prime Minister Narendra Modi was active in Punjab. He inaugurated the new civil terminal building at Halwara airport in Ludhiana. Furthermore, he renamed Adampur airport. It is now known as Guru Ravidass Maharaj Ji Airport, Adampur. The renaming honors the 15th-century saint and social reformer. The event coincided with Guru Ravidas’s birth anniversary. These inaugurations aim to boost air connectivity. They are expected to foster industrial and economic growth in the region. The new Halwara terminal can handle larger aircraft. It signifies improved aviation infrastructure for Punjab. These events formed another key part of the day’s news.
Broader Budgetary Context
The Union Budget 2026-27 aimed to boost capital expenditure. It targeted strengthening domestic manufacturing and infrastructure. Fiscal discipline remained a key focus. The fiscal deficit was projected to narrow. However, criticisms highlighted a lack of provisions for marginalized sections. Some also pointed to perceived neglect of specific state interests. The budget’s impact on various sectors is still being analyzed. This comprehensive news coverage presented a mixed picture of the day’s developments. The market’s sharp reaction overshadowed many other announcements. The budget’s long-term implications will unfold in the coming months. This featured news significantly shaped public discourse.
