BSE stock price tanks 15% after Budget 2026; why did the stock fall today?

The government proposes to increase the securities transaction tax, raising STT on futures from 0.02% to 0.05% and on options premium from 0.1% to 0.15%.

BSE (Bombay Stock Exchange) share price slipped 15 per cent to ₹2,377.40 on the National Stock Exchange (NSE) in Sunday's intraday trade after the government proposed to raise the securities transaction tax (STT) on Futures from 0.02 per cent to 0.05 per cent and on options premium from 0.1 per cent to 0.15 per cent.

 

At 12:32 PM, the stock price of BSE was locked in the temporary lower circuit of 15 per cent at ₹2,377.40 on the NSE. As many as 7.02 million equity shares had changed hands on the NSE till the time of writing this report, the exchange data shows.

 

During her speech, Finance Minister Nirmala Sitharaman said the government proposes to increase the securities transaction tax, on futures from 0.02 per cent to 0.05 per cent and on options premium from 0.1 per cent to 0.15 per cent. "The steep increase in STT on futures and options, coming on top of last year's hike, is likely to raise impact costs for traders, hedgers, and arbitrageurs. This could cool derivative activity and lead to a reduction in volumes. The intent appears to be volume moderation rather than revenue maximisation, as any potential revenue gain could be offset by lower derivative volumes," said Shripal Shah, MD & CEO, Kotak Securities.  During the first half of the current financial year (H1FY26), BSE generated 60 per cent of its revenues from equity derivatives. A hike in STT could raise the cost of trading, discouraging frequent trades, intraday activity, and options strategies, which would hurt volumes on the exchange.