Budget 2026 gives F&O traders a heart attack: Here's why
Sensex dropped 1.9% (down 1,546 points) and Nifty fell 2% on Sunday—one of the sharpest Budget-day slides in years.
The reason? The government just hiked the Securities Transaction Tax (STT) on futures and options trades, making it pricier to dabble in these popular markets.
STT on futures jumps from 0.02% to 0.05%
If you or your friends trade stocks or options, this change hits close to home.
The Budget proposed hiking STT on futures from 0.02% to 0.05%, and for options, taxes go up by as much as 50%.
For a ₹10 lakh turnover in futures, STT would rise from ₹200 to ₹500; if charged on both entry and exit, that would be ₹400 to ₹1,000 per round trip—so quick trades get costlier.
Retail investors rethink strategies
With trading costs rising, many retail investors are rethinking their strategies—some are moving toward mutual funds and SIPs instead of high-risk F&O bets.
The government says the move aims to cool off risky speculation after recent explosive growth.
Some analysts are urging investors to focus more on long-term investing for a healthier market ahead.