BSE, Angel One, other capital market stocks jump up to 4% after Budget-led crash; Jefferies says STT hike largely manageable

Budget impact on markets

• Capital market stocks rebounded after a sharp fall post Budget 2026 STT hike
• Nifty Capital Markets up 1%; BSE shares gained 4%
• STT hike seen as negative sentiment, with limited long-term F&O volume impact

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Capital market stocks jumped in trade on February 2, a day after they crashed following the Union Budget 2026.

The sharp rise in the share prices pushed the Nifty Capital Markets index up more than 1 percent to 4,438.95 in the morning trading hours of Monday.

STT on F&O increased:

While presenting Budget 2026, Finance Minister Nirmala Sitharaman raised STT on futures to 0.05 percent from 0.02 percent. This was seen as a significant reason for the market crash yesterday, as investors on the contrary had expected significant relief on this front.

For every Rs 1 lakh worth of futures sold, traders will now pay Rs 20 in STT instead of the previous Rs 12.50, explained Ashish Singhal, Co-founder of Lemonn. For a Rs 10,000 option contract sale, STT increased to Rs 10 from Rs 6.25, he added.

As a result, BSE shares tumbled more than 15 percent to Rs 2,377.40 on Sunday, before recovering some losses. The Nifty Capital Markets index plunged 6 percent to close at 4,381 yesterday.

Jefferies on STT hike:

Jefferies however remained broadly optimistic, suggesting that the STT hike is largely manageable. It added that the change should be viewed as a “sentiment negative”, and not a structural change.

Industry checks done by the international brokerage suggested around 5 percent volume impact. It added that there may be 5 percent drop in average daily turnover/orders, and this could mean around 4 percent earnings impact for companies like BSE and Groww.

Citi on capital markets:

Citi said that the STT hike will act as a near-term sentiment overhang, and likely result in a marginal decline in F&O volumes. However, the long-term behavioural change may be limited, it added.

The international brokerage said that past STT hikes had muted impact on options turnover. It sees Angel One and Groww facing mild topline pressure due to high F&O mix, with minimal impact for others like Nuvama.

Capital markets stocks: 

BSE shares gained nearly 4 percent to trade at Rs 2,694.50 apiece. Nuvama, Angel One and Motilal Oswal Financial Services shares gained around 2 percent each, as seen at 10.15 am.

HDFC AMC and CAMS shares gained around 1 percent each.

CDSL, Anand Rathi, IEX, MCX and few other capital market stocks however bucked the trend to trade in the red.

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