Budget Shock Hits Markets Hard: What’s Next For Sensex And Nifty Today?

New Delhi: There was a sharp decline in the Indian stock markets immediately after the announcement of Budget 2026. Amid investor anxiety, both the BSE Sensex and NSE Nifty 50 indices closed weak, registering one of the biggest falls on Budget Day.

Sensex fell by nearly 1,500 points and Nifty closed below 24,850 in the special trading session. This market mood suddenly changed after the presentation of the budget and investors sold on a large scale.

Why did the market fall so much?

The trend of the stock market came into crisis after some announcements made in Budget 2026. The biggest reason is believed to be the announcement of increase in Securities Transaction Tax (STT). Under this decision of the Income Tax Department, STT on futures was increased to 0.05% and for options to 0.15%, which increased the trading cost.

The increased taxes particularly angered derivatives traders, who began selling stocks in large quantities. This brought huge pressure in the market and both Sensex and Nifty started falling.

Did investors suffer huge losses?

Due to this big market shock, investors had to suffer a loss of about Rs 11 lakh crore. Selling pressure increased significantly in many major sectors like defence, PSU banks and metal stocks.

The fall of Sensex by more than 2,800 points and Nifty's loss by more than 750 points showed that some decisions of the budget have significantly affected the market.

Is there hope for improvement in the market the next day i.e. today?

Analysts are now eyeing Monday's session, when investors will decide whether the impact of the STT announcement will continue or there will be relief. Many experts believe that some long-term stimulus in the budget, such as capital expenditure and infrastructure investment, is expected to stabilize the market, but initial sentiment has been weak.

Market volatility is likely to continue, and it will be clear from Monday's open session how investors have taken this fall.

Which sectors appeared to be most affected?

After the budget, sharp selling was seen especially in brokerage, metal and banking stocks during the fall in Nifty and Sensex. Brokerage related stocks have witnessed a loss of around 10 to 12 per cent as they were adversely affected by the increased trading costs.

Some tech stocks and healthcare companies are showing better performance with less fall in the market, but overall the market environment remained quite negative on this Budget day.