Indian stock markets tumbled sharply during the special Sunday session, with the Sensex dropping over 1,000 points and the Nifty falling below 25,000. Investor wealth of nearly ₹6 lakh crore was wiped out in hours as the market reacted to the Union Budget. The sell-off followed Finance Minister Nirmala Sitharaman’s proposal to raise the Securities Transaction Tax (STT) on futures and options, triggering heavy selling across major indices.
Traders feared the higher tax would increase trading costs and reduce participation from derivatives investors, who play a key role in daily market volumes. Analysts said the move could lower short-term liquidity and speculative activity, causing both retail and institutional investors to lock in profits immediately. While long-term economic fundamentals remain strong, the sharp decline highlights how sensitive markets are to policy changes affecting trading.
