BSE, Nuvama, Angel One: Capital market stocks trade mixed as analysts assess the impact of STT hike in Budget 2026

Recovering from early losses, BSE shares rose by 2.87% to trade at ₹2,652 apiece on the NSE at 12:45 pm. The stock had declined over 2% to close at ₹2,797 apiece in the special Budget Day session on Sunday. 

Shares of Nuvama Wealth Management traded higher by 0.68% at ₹1,254.8 apiece on the NSE. The stock had tanked 10% intraday on Sunday before paring losses to settle with gains of over 1%. Shares of Angel One Ltd traded higher by 0.95% at ₹2,335. The stock moved between a high of ₹2,382.8 and a low of ₹2,256.1.  

Among other capital market shares, Billionbrains Garage Ventures Ltd, the promoter of Groww, dropped 4.75% to ₹160.25. Anand Rathi Wealth Ltd dropped 2.11% to ₹2,836.30, 360 One WAM dropped by 1.5% to ₹1,085, and MCX dropped by 0.5% to ₹2,221.1 apiece on the NSE.

Edelweiss Financial, Geojit Financial Services and SMC Global shares dropped up to 6% in the first half of the session on the NSE on Monday.  

Budget 2026-27 raises STT on derivatives and taxes share buybacks as capital gains 

Finance Minister Nirmala Sitharaman, in the Union Budget 2026-27, announced a hike in STT on futures contracts. In her Budget speech, Sitharaman increased the STT to 0.05% from the current 0.02%. 

STT on options premium and exercise of options has been proposed at 0.15% from the current rate of 0.1% and 0.125%, respectively. 

Analysts project STT hike to hit F&O volumes

Market analysts stated that a rise in STT on futures could lead to a marginal reduction in volumes.  

Analysts at CITI stated that the increase in STT can lead to a marginal reduction in F&O volumes in the near term and dampen customer sentiment, even as they rule out long-term change in customer trading behaviour. 

Global financial firm Jefferies expects that the impact on option turnover is likely to be limited, noting that a similar increase in overall expenses in the July 2024 budget had a limited impact on orders or participation. 

“Discussions with industry experts indicate up to 5% volume impact. Est. a 5% decline in ADTO/orders for BSE/GROWW could result in a 4% earnings impact,” the analysts said.  

Analysts at Bernstein expect that the STT hike would hurt the derivatives trading value chain and there would be some volume impact (hard to quantify for now).  

“For Nuvama, higher STT should hurt the profitability of market-makers/high-frequency trading outfits (HFTs). If higher STT meaningfully eats into the profit spread for HFTs, this would reduce the Indian markets' profit pool and thus hurt Nuvama,” the financial firm said.