Sensex gains 223 points as STT impact fades
After a sharp fall following the Union Budget, Indian stock markets are showing signs of recovery.
By Monday morning, Sensex was up 223 points to 80,946 and Nifty gained 31 points to reach 24,856.
The rebound comes after a surprise hike in Securities Transaction Tax (STT), which had spooked investors.
Brokers, exchanges were hit hard by STT hike
The STT hike—effective date not specified in the source—means trading futures and options will get pricier by ₹0.30-₹0.70 per contract.
This could shrink F&O trading volumes by up to 30%, which is tough news for popular brokerages like Angel One and Groww, and exchange BSE, which had already seen their stocks tumble, in some reports by as much as 13.5%, while BSE was reported down about 10%.
Foreign investors pulled out over ₹41,000 crore in January 2026
The STT increase triggered a massive sell-off wiping out over ₹6 lakh crore in market value and foreign investors pulled out over ₹41,000 crore in January 2026 alone.
While some big names like Reliance and Adani Ports attracted buyers even during the chaos, most sectors—especially autos and FMCG—are still under pressure as volatility stays high.