Broking and exchange stocks witnessed sharp selling pressure in early trade after the Union Budget 2026 announced a steep hike in Securities Transaction Tax (STT) on futures, triggering concerns over the near-term outlook for derivatives volumes and broker profitability.
Shares of Angel One hit the 10% lower circuit, falling to ₹2,286.90 on the NSE. The stock opened at ₹2,518, touched an intraday high of ₹2,522.10, before sliding to the day’s low of ₹2,286.90. The decline came on heavy volumes of over 11 lakh shares, with the stock locked at its lower circuit limit.
BSE also locked in a 10% lower circuit, tumbling to ₹2,517.30. The stock opened at ₹2,800 and remained under selling pressure through the session, with volumes crossing 49 lakh shares. BSE’s open interest also remained elevated, reflecting heightened derivatives positioning amid the policy shock.
Wealth and broking-linked stocks extended the weakness, mirroring the broader sentiment. 360 One WAM declined over 9% to ₹1,028.50 after hitting an intraday low of ₹1,025.40, compared with a previous close of ₹1,134.30. Meanwhile, Nuvama Wealth Management slid more than 6% to ₹1,257.20, after falling from an intraday high of ₹1,356.90 to a low of ₹1,241.80.
The sharp sell-off followed the Budget 2026 announcement that STT on futures will rise from 0.02% to 0.05%, effectively more than doubling the tax burden on futures trades. Market participants flagged that higher transaction costs directly compress margins for brokers and discourage high-frequency and leveraged trading strategies, particularly in the F&O segment where turnover sensitivity is high.
With derivatives contributing a significant share of revenues for discount brokers and exchanges, investors appear to be factoring in a potential slowdown in retail participation and algorithmic trading activity in the near term. The immediate locking of several stocks at lower circuit levels underscores the market’s negative reaction to the STT hike and its perceived impact on capital market intermediaries.
Data as on Feb 1, 2026, 12:20PM
Disclaimer: This article is for informational purposes only and is based solely on the inputs provided. It does not constitute investment advice or a recommendation.
