Shares of Nuvama Wealth Management declined sharply on Sunday, February 1, extending losses across broking and capital market stocks after Union Budget 2026 confirmed a higher Securities Transaction Tax (STT) on futures trading.
As of around 12:19 PM IST, Nuvama Wealth shares were trading at Rs 1,236.30, down 7.05%, with the stock falling Rs 93.80 in the session.
Budget 2026 STT hike triggers sector-wide pressure
The selling pressure followed the government’s decision to increase STT on futures from 0.02% to 0.05%, a move that materially raises trading costs for derivatives participants. The hike is expected to impact retail traders, proprietary desks, and algorithmic traders who rely on high-frequency futures trades.
Higher transaction costs typically lead to lower trading intensity, raising concerns about near-term moderation in F&O volumes.
Why Nuvama Wealth is under pressure
Nuvama Wealth has meaningful exposure to capital markets activity through its broking, wealth management, and institutional businesses. A potential slowdown in derivatives trading can weigh on transaction-linked revenues and overall market participation, particularly in the short term.
The broader sell-off across broking stocks reflects investor caution around earnings sensitivity to trading volumes following the Budget’s tax changes.
What markets are watching next
Investors are now tracking whether the STT hike leads to a sustained decline in derivatives volumes or if trading activity stabilises after the initial adjustment. The immediate reaction suggests markets are factoring in short-term pressure on capital market intermediaries, rather than long-term structural concerns.
For now, Nuvama Wealth shares remain under pressure as markets continue to digest the implications of the Budget’s derivatives taxation changes.
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