365telugu.com on line news,NEW DELHI,February 2, 2026: Following the presentation of the Union Budget 2026-27 by Finance Minister Nirmala Sitharaman, the Indian stock market is bracing for a significant shift in trading costs and taxation.
The new measures, aimed at cooling speculative activity and simplifying corporate payouts, have triggered a sharp reaction across Dalal Street.
Here is a comprehensive breakdown of the key changes for stock market investors.
- Steep Hike in Securities Transaction Tax (STT)
In a decisive move to deter high-frequency speculative trading—particularly among retail participants—the government has proposed a substantial increase in STT rates for the derivatives segment.
Futures: The STT on futures contracts will rise to 0.05% (up from 0.02%).
Options: The tax on options premiums and the exercise of options will both increase to 0.15% (up from 0.1% and 0.125%, respectively).
Market Impact: The announcement led to an immediate intraday crash, with the Sensex plunging over 1,500 points. Analysts suggest that while this will increase “impact costs” for traders and hedgers, the government’s goal is to encourage a shift from short-term “frenzy” to long-term, sustainable investing.
ఇదీ చదవండి..చిన్మయ మిషన్ ఢిల్లీకి MG హెక్టర్ అంబులెన్స్ను అందజేసిన JSW MG మోటార్ ఇండియా..
Read this also..JSW MG Motor India Bolsters Community Healthcare with Retrofitted MG Hector Ambulance Donation..
- Overhaul of Share Buyback Taxation
The Budget has corrected a previously “investor-unfriendly” provision regarding how companies return capital to shareholders.
Shift to Capital Gains: Moving away from the “deemed dividend” model introduced in 2024, buyback proceeds will now be taxed as Capital Gains for all shareholders.
Benefit for Investors: This allows investors to deduct their original cost of acquisition, meaning they are only taxed on the actual profit (gain) rather than the entire consideration received.
Promoter Check: To prevent tax arbitrage by large stakeholders, promoters will face an additional buyback tax, bringing their effective rates to 22% for corporate promoters and 30% for others.
Read this also..Naga Chaitanya Labels Goa Street Race “Make or Break” for Hyderabad Black Birds’ Title Hopes..
Read this also..Union Budget 2026: 10 Strategic Takeaways for a Developing India..
- Capital Gains and Income Tax Stability
Contrary to some pre-budget fears, the core structure of capital gains remained largely untouched:
LTCG Unchanged: Long-Term Capital Gains (LTCG) tax remains at 12.5%.
Exemption Limit: The existing exemption limit of ₹1.25 lakh for equity-oriented investments continues.
Income Tax Slabs: No major changes were announced to the income tax slabs under the New Tax Regime for the upcoming fiscal year.
- Widening Foreign Access
The Budget also proposed moves to deepen the market by easing entry for global individual investors:
Portfolio Investment Scheme (PIS): Individuals resident outside India will now be permitted to invest directly in Indian equities.
Higher Limits: The ownership limit for these individuals has been raised from 5% to 10%, while the combined cap for Persons of Indian Origin (PIO) has been increased to 24%.
“The policy choice is clear—the government is prioritizing steady capital formation over short-term transaction revenue,” noted industry experts.
While brokerage stocks like BSE, Angel One, and MCX faced selling pressure due to the STT hike, the rationalization of buyback taxes is being hailed as a “fairness-driven” reform that aligns India with global best practices.