Key gauges trade lower post budget on STT hike, buyback tax

Indian equity benchmarks remained under pressure in late afternoon trade as market participants reacted to the Finance Minister’s announcement of an increase in Securities Transaction Tax (STT) on futures trading to 0.05 per cent from 0.02 per cent, making derivative trades marginally costlier. Sentiment was further weighed down by the government’s decision to tax share buyback proceeds as capital gains for all categories of shareholders. On the positive front, budget continued to focus on capital expenditure, fiscal consolidation, and infrastructure-led growth, which is expected to support long-term earnings visibility across core sectors. Measures aimed at boosting manufacturing, MSMEs, and job creation also provided comfort to investors, reinforcing the government’s commitment to sustaining economic momentum despite near-term market volatility.

The BSE Sensex is currently trading at 81395.86, down by 873.92 points or 1.06% after trading in a range of 79899.42 and 82726.65. There were 4 stocks advancing against 26 stocks declining on the index.

The few gaining sectoral indices on the BSE were IT up by 1.08%, TECK up by 0.41% and Consumer Durables up by 0.36%, while PSU down by 3.34%, Metal down by 3.02%, Basic Materials down by 2.33%, Capital Goods down by 2.31% and Energy down by 2.23% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 2.45%, TCS up by 2.45%, Sun Pharmaceutical Industries up by 0.99% and Infosys up by 0.90%. On the flip side, SBI down by 4.77%, Bharat Electronics down by 4.30%, Adani Ports & SEZ down by 3.10%, Bajaj Finance down by 3.01% and ITC down by 2.78% were the top losers.

Meanwhile, the government data has showed that gross Goods and Services Tax (GST) collections increased 6.2 per cent to over Rs 1.93 lakh crore in January 2026 as compared to Rs 1.82 lakh crore collected in January 2025, mainly on higher revenues from imports. Total refunds declined 3.1 per cent to Rs 22,665 crore. For the period from April 2025 to January 2026, gross GST collections totalled Rs 18.43 lakh crore, up 8.3 per cent from Rs 17.02 lakh crore in the same period last year.

Net GST revenues grew 7.6 per cent to about Rs 1.71 lakh crore in January. Cess collection (from tobacco products) in January stood at Rs 5,768 crore. This compares to Rs 13,009 crore in collections in January last year when a cess was levied on luxury, sin and demerit goods such as cars, and tobacco products. Gross tax collections from domestic transactions grew 4.8 per cent to Rs 1.41 lakh crore, while import revenues were up 10.1 per cent to Rs 52,253 crore in January. 

Effective September 22, 2025, GST rates on about 375 items were slashed, making goods cheaper. Also, a compensation cess is levied only on tobacco and related products, as opposed to luxury, sin and demerit goods earlier. The lowering of GST rates has impacted revenue collections. 

The CNX Nifty is currently trading at 25012.80, down by 307.85 points or 1.22% after trading in a range of 24571.75 and 25440.90. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.85%, Max Healthcare Inst up by 2.63%, Titan Company up by 2.58%, TCS up by 2.40% and Sun Pharmaceutical Industries up by 0.88%. On the flip side, SBI down by 4.68%, Hindalco down by 4.36%, Bharat Electronics down by 4.08%, ONGC down by 4.04% and Coal India down by 3.99% were the top losers.