Why did MCX share price today fall so much?

The stock slid about 18% intraday after Budget 2026 India proposed raising transaction taxes on derivatives. A higher STT raises trading costs for futures and options, which can cut volumes. Since exchanges and brokers rely on turnover, the market priced in lower revenues and reduced growth visibility.

How big is the STT hike on futures and options?

The proposal lifts STT on futures to 0.05% from 0.02% and to 0.15% on options premiums. For example, on ₹1 crore futures turnover, STT rises from ₹2,000 to ₹5,000. On a ₹1 lakh options premium, STT would be ₹150. These higher costs can reduce activity.

Is the correction in MCX a buying opportunity now?

It depends on final tax rules and how volumes settle. Wait for clarity on the Finance Bill, monitor daily turnover and spreads, and watch technicals. Oversold readings can persist in strong downtrends. A steadier tape and improving liquidity would offer better odds for any staggered entry.

What should short-term traders watch after the crash?

Focus on volatility and liquidity. ATR is elevated, so position sizes should reflect wider ranges. Track VWAP and depth at key levels, and manage risk with tight stops. Look for positive momentum divergences and improving breadth before attempting contrarian trades in a strong downtrend.

How will brokerage stocks be affected by the STT hike?

Lower turnover hurts brokers through reduced commissions, market-making gains, and financing income. If options activity cools, per-lot brokerage also declines. This explains why we saw brokerage stocks crash alongside the exchange today. The extent depends on final tax rates and how quickly trading volumes adjust.

Global Market Insights

MCX.NS Stock Today: February 1 Plunges 18% on STT Hike Shock

ByHuzaifa Zahoor February 1, 2026February 1, 2026

MCX share price today plunged about 18% after Budget 2026 India proposed raising the Securities Transaction Tax on derivatives. Shares of MCX.NS fell as investors priced in weaker volumes and lower fee income for the exchange and its members. The plan lifts STT on futures to 0.05% from 0.02%, and to 0.15% on options premiums. Brokerage stocks also sank, adding to a broad risk-off move, with Sensex and Nifty down over 1% intraday. We break down the impact, risks, and what to track next for informed decisions.