What is the STT hike and why does it matter now?

India proposes raising the Securities Transaction Tax to 0.05% on equity futures and 0.15% on options. Higher costs can reduce derivatives activity, widen spreads, and lift volatility. The change hit sentiment quickly, which is why equities sold off on Budget day even though the broader policy mix still supports select sectors.

How did Nifty 50 today react to Budget 2026?

Nifty 50 today fell nearly 2% intraday as derivatives-linked selling picked up. Sensex falls about 1,500 points and market value losses neared Rs 10 lakh crore at one stage. The index is below its 50-day average but above the 200-day, making the 25,180 area an important support to monitor.

What should Canadian investors with India exposure do?

Check sizing, time horizon, and liquidity. Consider staged buys rather than lump-sum moves, and use protective options where available. Watch the rupee and global dollar trends, as currency can drive CAD returns. Focus on pre-defined stop ranges, not headlines, while you wait for clarity on volumes and policy next steps.

Is this a buy-the-dip or the start of a downtrend?

It is a correction driven by a tax shock, not proof of a lasting downtrend. If the 200-day area holds and derivatives liquidity stabilizes, a relief bounce is likely. If support breaks on heavy volume, risk increases. Let price confirm with improving breadth and calmer options metrics before scaling up.

Global Market Insights

^NSEI Today: February 01 STT Hike Sparks 2% Budget-Day Selloff

ByDanny Kontos February 2, 2026February 2, 2026

Nifty 50 today fell after India proposed a Securities Transaction Tax increase on derivatives in Budget 2026. The hike to 0.05% on futures and 0.15% on options raised trading costs and hit sentiment. The move sparked a near-2% slide intraday, with breadth weak and brokers under pressure. For Canadians holding India exposure through global funds, the setup adds short-term risk but not a broken story. We break down what changed, key levels, and practical steps to consider now.