Stock Market Crash Highlights:Sensex falls 1,547 pts,Nifty 50 below 24,900 as Budget proposal of STT hike spooks traders

Stock Market Highlights: Dalal Street sank and ended with negative bias to the policy announcements and blame it on

1) Raising the STT on Futures from 0.02% to 0.05%.

2) STT on options premium and exercise of options to be raised to 0.15% from rate of 0.1% and 0.125%, respectively.

Experts, firmly believe FM Sitharaman’s Union Budget ushers a ‘new leg to the bull market’. The budget has given lots of impetus for pushing capital expenditure (capex), manufacturing, employment, and infrastructure development.

Benchmark Indices at 3:30 PM

NIFTY (-495, 24825)

SENSEX (-1547, 80723)

BANK NIFTY (-1193, 58417)

Stock Market Live: According to Bhupinder Singh, Founder, InCred Group, this Budget has many positive structural elements and reflects a long term growth mindset. The strong push on infrastructure, domestic manufacturing and the technology ecosystem can meaningfully strengthen India’s industrial and innovation base.

At the same time, the sharp increase in STT on futures and options has understandably unsettled markets and could weigh on trading volumes at a delicate moment. Predictability and active participation are vital for deep capital markets, so ongoing engagement between government and market stakeholders will be key.

Stock Market Live: According to Tapse, Nifty 50 has ended on a precarious note after the Union Budget 2026-27.

Technically, Nifty 50's key hurdle now seen at 25,370 mark. Major hurdle at psychological 26,000 mark. Key make-or-break support at 24,500 mark.

Stock Market Live: "Budgets should be seen as a continuum. Instead of expecting new announcements every year, one should see the trajectory of how successive budgets are adding up. Budget 2026 continues to reinforce the financial and institutional foundations essential for the PMs vision of Viksit Bharat by 2047," said Dheeraj Gupta of Jumboking.

Stock Market Highlights: Dalal Street sank and ended with negative bias to the policy announcements and blame it on

1) Raising the STT on Futures from 0.02% to 0.05%.

2) STT on options premium and exercise of options to be raised to 0.15% from rate of 0.1% and 0.125%, respectively.

Experts, firmly believe FM Sitharaman’s Union Budget ushers a ‘new leg to the bull market’. The budget has given lots of impetus for pushing capital expenditure (capex), manufacturing, employment, and infrastructure development.

Benchmark Indices at 3:30 PM

NIFTY (-495, 24825)

SENSEX (-1547, 80723)

BANK NIFTY (-1193, 58417)

Stock Market LIVE: According to Maulik Patel, Head of research, Equirus Securities, the Union Budget for FY27 reinforced a strategic balancing act between growth and fiscal consolidation. The central capital expenditure outlay has been raised to ₹12.2 trillion, a 9% increase over FY26 R.E.

The overarching theme marks a clear transition from "broad-based infrastructure" to "high-tech industrialization" and "deepening domestic value addition."

By focusing on critical mineral security and the launch of Semiconductor Mission 2.0, the government is pivoting toward a self-reliant, technology-driven manufacturing ecosystem, aiming to move India up the global value chain from assembly to component-level manufacturing.

(1) Defence and Aerospace: The defence budget continues its strong trajectory with a capital outlay of ₹2.19 trillion (an 18% increase over FY26 R.E.), while effectively limiting revenue expenditure growth to just 3%. Notably, the Aircraft and Aero-engines category remains the largest line item at 29% of the proposed capex, though this is a moderation from the 39% seen last year. A standout structural reform is the new customs duty exemption on raw materials for aircraft parts (including civil aircraft). This is a strategic move to position India as a global MRO hub, incentivizing domestic servicing of both military and commercial fleets.

(2) Railways: Railways received a record capital outlay of ₹2.93 trillion, up 10% over FY26 R.E. The focus continues to shift from track electrification toward high-tech safety and speed. Key highlights include the accelerated rollout of Kavach 4.0 and the announcement of seven new high-speed rail corridors.

(3) Renewables: The PM Surya Ghar scheme and an enhanced PM-KUSUM 2.0 are designed to drive massive demand for solar inverters, modules, and battery storage. To support this, the budget has rationalized duties on critical minerals like Lithium and Cobalt and provided BCD exemptions for solar glass raw materials. The budgetary allocation for PM-KUSUM has been set at ₹50 billion, marking a substantial 92% increase over FY26 B.E., though it remains flat relative to the FY26 R.E. Simultaneously, the PM Surya Ghar (Rooftop Solar) outlay has been raised to ₹220 billion, representing a 29% expansion over FY26 R.E.

(4) Electronics and Semiconductors: The focus has matured with the launch of ISM 2.0 and a significant hike in the Electronics Component Manufacturing Scheme (ECMS) to ₹400 billion. The government is actively correcting "inverted duty" structures by lowering duties on inputs (like Open Cells) while doubling duties on finished goods like Interactive Flat Panels.

(5) Others: Furthermore, the establishment of Rare Earth Corridors and specialized duty hikes on electrical insulator parts signal a clear intent to localize the supply chain for high-end electrical and mechanical equipment.

Stock Market LIVE: According to Abhinav Tiwari, Research Analyst at Bonanza, ITC stocks has been under pressure lately after the government announced replacing GST compensation cess with excise duties on cigarettes based on the stick length plus 40% GST to align with public health goals and revenue post cess repayment.

This tax hike of 40%+ implies price hike of 25%+ which could mean volumes could roughly decline by 15%-17% according to channel checks resulting in revenue declining by 13-15% and EBIT declining by 15-17% on average as we gear to enter FY27E.

Today’s budget announcement by Finance Minister hiked National Calamity Contingent Duty (NCCD) rate on jarda scented tobacco, chewing tobacco etc. from earlier 25% to 60% staring May 2026 which we believe will be another overhang for the cigarette companies. These combined changes are expected to impact the operational performance for cigarette companies unless it is passed on to customers and if it does, the volume share would be a key monitorable thing.

In the recent Q3FY26 earnings as well, ITC mentioned that recent changes in GST and Excise Duty rates announced have led to an unprecedented increase in tax incidence on cigarettes and such a steep increase will provide further impetus to illicit trade meaning operational performance to weaken in the medium term though long term growth trajectory remains intact with non-cigarette business continuing to maintain steady progress.

Stock Market LIVE: According to Rajiv Sabharwal, MD and CEO, Tata Capital Ltd, the Union Budget reflects a forward-looking approach to sustaining India’s growth trajectory, with capital expenditure positioned as a long-term productivity driver. MSMEs continue to anchor employment and local economic activity, supported by measures that have strengthened credit access and operational viability.

Sabharwal added that the calibrated focus across sectors such as pharmaceuticals, logistics, infrastructure, healthcare, and renewable energy highlights the importance of strong enabling ecosystems for competitive growth.

“For banks and NBFCs, which have expanded their role in credit delivery across segments, the emphasis on structural strengthening is timely. Efforts to enhance institutional efficiency and scale, including the restructuring of state-operated NBFCs, contribute to a more resilient financial architecture, while the projected fiscal deficit of 4.3% of GDP demonstrates a measured approach to fiscal prudence aligned with the Viksit Bharat 2047 vision,” said Rajiv.

Stock Market LIVE: According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, Well, going forward, caution is the buzzword at Dalal Street.

# Blame it on land mines that are placed here and there — and primarily planted by the President of the United States, President Donald Trump — which is clearly derailing any optimism at Dalal Street.

The battle going forward will also be between deteriorating technical conditions, vanishing liquidity from FIIs camp, weaker Indian Rupee, and rising US bond yields while on the other hand are positive global cues, a government committed to reforms and bring back the economy on track on backdrop of fading geopolitical tensions.

So, expect volatility to rule the roost and choppiness will prevail at Dalal Street for the rest of 2026 primarily as investors brace for a tug of war battle between the bulls and the bears.

# Long story short: Stay cautious as long as tariff, rates, and inflation are on the front pages.

Stock Market LIVE: Infrastructure & Capital Expenditure: The budget continues a capex-led growth strategy, raising public investment to ₹12.2 lakh crore, with a specific focus on transport, logistics, and energy.

Manufacturing (Semiconductors & Electronics): A significant push is directed toward the "India Semiconductor Mission 2.0" and increasing the outlay for electronics components manufacturing to ₹40,000 crore.

Employment & MSMEs: A ₹10,000-crore SME Growth Fund is proposed to support small and medium enterprises, alongside targeted incentives for labour-intensive sectors like textiles and chemicals.

Skills & Education: The budget emphasizes capacity-building with initiatives like setting up girls' hostels in every district, five university townships near industrial corridors, and skill development for the tourism sector.

Healthcare & Technology: A major push was announced for mental health infrastructure, including a new NIMHANS in North India, alongside advancements in AI, health, and tourism.

Green Energy & Sustainability: The budget includes a ₹20,000 crore outlay for carbon capture, utilisation, and storage (CCUS) over five years, alongside tax exemptions for lithium-ion battery manufacturing.

Urban Development: The introduction of "City Economic Regions" (CER) with a ₹5,000 crore allocation per city over five years to foster regional growth.

Bottom-line: The Union Budget could be a game changer and represents the reforms of the BJP government as all bullish eyes now aim for —— India’s ambition to reach the $5 trillion economy goal, according to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.

Stock Market LIVE: Nifty 50(CMP: 24825)

Support: 25722/24500

Resistance: 25370/25575

Range: 24723-24950

21 DMA: 25614

50 DMA: 25851

200 DMA: 25209

Trend: Neutral

Stock Market LIVE: ACC (CMP 1623) 52-week low at 1614.20

EMAMI (CMP 475) 52-week low at 474.40

IEX (CMP 125.20) 52-week low at 122.06

IRCTC (CMP 603.80) 52-week low at 600

IREDA (CMP 128.95) 52-week low at 124.11

Stock Market LIVE:BEL(CMP 421.95) 52-week high at ₹ 461.65

OIL (CMP 501.45) 52-week high at ₹ 522.50

SBIN (CMP 1020) 52-week high at ₹ 1083.60

Stock Market LIVE: BEL (-6.02%)

HINDALCO (-5.78%)

ONGC (-5.50%)

SBIN (-5.31%)

ADANIPORTS (-5.06%)

Stock Market LIVE: WIPRO (+2.12%)

MAXHEALTH (+1.82%)

TCS (+1.74%)

CIPLA (+1.44%)

SUNPHARMA (+0.86%)

Stock Market LIVE: NIFTY PSUBANKS (-5.57%)

NIFTY METALS (-4.05%)

NIFTY IT (-1.03%)

NIFTY FINANCIAL SERVICES (-2.36%)

Stock Market LIVE: NIFTY IT (+0.57%)

Stock Market LIVE: A bold Budget that combines growth with inclusion. The strong emphasis on skilling, alongside sustained investments in science, innovation, and research are timely & will strengthen domestic capabilities, advancing import substitution in critical sectors.

Bolstering infrastructure and logistics with a focus on energy-efficiency & impetus to data centre ecosystem will further reinforce confidence in our burgeoning digital economy.

Bharti remains highly committed to play its part in enabling technology-led growth, expanding financial inclusion, and accelerating future-ready education through Bharti Airtel Foundation to secure India’s talent dividend.

Stock Market LIVE: "We are of the view that the short-term market texture is volatile, and volatility is likely to continue in the near future. Hence, level-based trading would be the ideal strategy for day traders. On the higher side, 25,000/81,300 would act as a crucial resistance zone. As long as the market is trading below this level, weak sentiment is likely to prevail.

On the downside, the correction wave is likely to continue till 24,650-24,600/80,100-79,900. Further down side may also continue which could drag the index till 24,500-24,300/79,600-79,000. On the flip side, above 25,000/81,300, the market could move up to 25,200/81900 or 200day SMA ," said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Stock Market LIVE: Investors lost about ₹10 lakh crore in a single session as the overall market capitalisation of BSE-listed firms dropped to ₹450 lakh crore from ₹460 lakh crore in the previous session.

Stock Market LIVE: “The Budget is slightly disappointing from the stock market perspective since many market participants were expecting some relief on capital gains tax, which didn’t happen. But from the medium to long-term perspective, this is a good Budget which lays out a clear strategy for growth with fiscal prudence. Nominal GDP can rise by 10% in FY 27 enabling corporate earnings to rise by around 15 %, which is good from the market perspective,” said Vijayakumar.

Stock Market LIVE: The broader market also experienced a downturn, as the Nifty Midcap 100 dropped by 2.23% and the Nifty Smallcap 100 fell by 2.73%, creating bearish candlestick patterns with lower shadows that highlighted the level of intraday fluctuations. Market breadth remained poor, with the advance-decline ratio heavily favoring decliners; among the Nifty 500 stocks, 330 finished the day in the red, indicating the broad effects of the sell-off.

Stock Market LIVE: "We should remain sector selective and check whether specific sectors have bottomed out, instead of analyzing if Nifty is bottoming out. From here onwards we see some tailwinds in IT due to tax holiday for data centers till 2047 and headwinds in AMCs due to the Budget announcement of STT increase in F&O.

Overall, the market may remain volatile until March, and we may see stability from April as the new fiscal year begins and budget allocations start flowing. Defensives and balance sheet strong companies with earnings visibility are likely to offer better downside protection.

Overall, markets may continue to see choppy movements in the near term, but a clearer trend and improved stability could emerge from April, driven by fiscal spending, earnings visibility for FY27, and clarity on global macro conditions," said Abhinav Tiwari, Research Analyst at Bonanza.

Stock Market LIVE: "Despite the negative market reaction, the Budget remains positive from a long term perspective. Capital expenditure has been increased to Rs. 12.2 lakh crore, with strong focus on infrastructure, defence manufacturing, semiconductors, data centres, and pharmaceuticals. Support for job creation and small businesses also strengthens the growth outlook.

Overall, the market fall appears to be a short term reaction. While near term volatility may continue, sectors linked to infrastructure, defence, railways, semiconductors, and healthcare are well placed to benefit over the medium term if execution remains strong," said Tiwari.

Stock Market LIVE: Today, the Indian stock market experienced a turbulent session following the announcement of the Union Budget. Both major indices finished significantly lower after fluctuating between gains and losses throughout the day. The Sensex dropped by 1,546 points, ending at 80,722, while the Nifty 50 decreased by 1.95% to settle at 24,825.

The market began optimistically, with the Sensex rising by over 450 points in early trading, but considerable selling pressure emerged following the Budget speech. A primary factor behind the market drop was the government's decision to significantly raise the STT on derivatives trading.

Sensex tumbles 1,546.84 points to settle at 80,722.94; Nifty 50 dives 495.20 points to 24,825.45.

Stock Market LIVE: According to Hemal Thakkar, India’s Semiconductor Mission 2.0 has received a strategic boost with a revised budget of ₹40,000 crore under Electronics Components Manufacturing Scheme focused on scaling the domestic electronics ecosystem. The integration of dedicated rare earth corridors in four states will catalyse local processing, ensuring the raw materials needed for high-tech manufacturing are readily available.

Beyond economic stability, this initiative provides a shot in the arm for the automotive industry, paving the way for a self-reliant manufacturing future.

Stock Market LIVE: According to Vijay Kuppa, CEO at InCred Money, after the direct tax cuts and GST cuts last year, there was not much expected on the personal tax front in the budget and it has transpired similarly. The change in the Buyback tax is welcome as it helps companies distribute cash without significant tax burden on investors. One dampener for the capital markets segment is the increase in the Securities Transaction Tax (STT) on the F&O segment which will deter many high frequency traders because of higher costs.

Stock Market LIVE: According to Vinod Nair, Head of Research, Geojt Investments, the budget supports sectors affected by global trade tariffs and focuses on emerging areas of development, including data centers, GCC, semiconductors, biopharma, rare earth elements, and manufacturing. Additionally, it extends support to traditional sectors like textiles, aquaculture, and MSMEs, which have been impacted by global protectionist trade policies.

Despite these measures, the market's reaction has been negative, primarily due to low expectations, limited outlays and the negative bias created by the increased Securities Transaction Tax (STT) for futures, triggering a knee-jerk response

Stock Market LIVE: IT stocks stabilised on Sunday, as investor sentiment showed signs of improvement following relief measures for the sector in Budget 2026. Central to this recovery were adjustments to India's Safe Harbour Rules, a complex tax matter, but one that significantly affects IT firms utilizing global delivery models.

During Sunday's tumultuous special budget session, shares in the information technology sector were performing well. The NIFTY IT index reached an intraday peak of 38,699 after previously dipping to an intraday low of 37,297.55, as the government raised the limit for qualifying for safe harbour for IT services from ₹300 crore to ₹2,000 crore. Stocks of IT firms such as Wipro, Persistent Systems, TCS, LTI Mindtree, Infosys, and Coforge saw gains ranging from 0.2% to 3%.

In the midcap IT sector, shares of companies like Zensar Technologies, Tata Elxsi, Birlasoft, and L&T Technology Services rose between 1% and 4% following the government's substantial increase in the safe harbour threshold for IT services.

Safe Harbour for IT services pertains to transfer pricing regulations that permit eligible companies to use predetermined profit margins to bypass extensive audits.

Stock Market LIVE: According to Vinod Nair, Head of Research, Geojit Investments, the 2026 Budget aims to balance growth and stability by leveraging the available strength of its consolidated financials, following the extensive reforms over the past one to three years.

These measures may result to a modest near-term total receipt, which had led to low stock market expectations for further tax and non-tax reforms. Despite external challenges, the budget is structured around a nominal GDP growth target of 10% higher than in FY26.

This optimistic outlook is driven by an anticipated rise in domestic demand, supported by the long-term multiplier effect of the implemented reforms. However, this forecast must navigate external challenges such as tariffs and geopolitical tensions, amidst a low inflationary environment.

The budget supports sectors affected by global trade tariffs and focuses on emerging areas of development, including data centers, GCC, semiconductors, biopharma, rare earth elements, and manufacturing. Additionally, it extends support to traditional sectors like textiles, aquaculture, and MSMEs, which have been impacted by global protectionist trade policies.

Despite these measures, the market's reaction has been negative, primarily due to low expectations, limited outlays and the negative bias created by the increased Securities Transaction Tax (STT) for futures, triggering a knee-jerk response.

Stock Market LIVE: According to Pankaj Pandey, Head of Retail Research, ICICI Direct, the Union Budget 2026-27 was focused on sustaining growth through capex expenditure while marginally easing on fiscal prudence path. The government has pegged the capex at ₹12.2 lakh crore (FY27BE), implying a 11.5% YoY growth with capex to GDP ratio maintained at a healthy 3.1%.

From segment perspective, Defence allocation is up 17.6%, while allocation to roads and railways segment has grown by 8.1% and 10.3% YoY. While maintaining commitment towards fiscal prudence, the Fiscal deficit was pegged at 4.3% in FY27BE vs. 4.4% in FY26RE, albeit slightly lower than market expectations of 4.2%.

Total Subsidy allocation across major heads such as Fertilizer, Food and petroleum was contained at 1% of GDP ( ₹ 4.1 lakh crore) for FY27BE vs. 1.2% of GDP ( ₹ 4.3 lakh crore) in FY26RE.

Most importantly, the government also focused on driving FDI by proposing a tax holiday until 2047 for foreign cloud companies that deliver services to global customers using data centre infrastructure located in India. The proposal is designed to accelerate data localisation and incentivise global cloud players to build domestic capacity

To encapsulate, given the sustained capex, overall capex-oriented sectors will continue to do well while broad market outlook will continue to track factors such as global developments, corporate earnings and domestic macroeconomic cues.

Stock Market LIVE: India plans to prolong a tax holiday at its international finance center to enhance its attractiveness for foreign companies setting up operations there, as stated in the country’s budget documents.

The government has suggested extending the tax holiday to 20 consecutive years within a 25-year period at Gujarat International Finance Tec-City, known as GIFT City, according to the documents. Presently, businesses receive a 10-year tax holiday over 15 years. This initiative will alleviate concerns for major banks and asset managers who have been apprehensive about the expiration of the tax incentive.

Stock Market LIVE: Indian Railway stocks, including IRFC, RITES, RVNL, and Titagarh Rail Ltd., are experiencing losses of up to 5% on Sunday, February 1, following the announcements made in the Union Budget 2026. To be more specific, the budget allocation for new railway lines has risen to ₹36,722 crore, compared to the previous amount of ₹30,632 crore. The funding for gauge conversion has also seen a slight increase, now at ₹4,600 crore, up from ₹4,284 crore.

Stock Market LIVE: "[STT Hike] On the face of it, this is equity positive as option trades becomes more expensive. Obviously, at a portfolio level, the hit on derivative segment could lead to rebalancing, and drag the equity segment in the near term. But it is hard to say that the hike alone will dissuade the speculative interest tied to derivatives market, especially the options," said Anand James, Chief Market Strategist, Geojit Investments Limited.

Stock Market LIVE: On Sunday, Union Finance Minister Nirmala Sitharaman unveiled plans to enhance 15 archaeological locations, such as Lothal, Dholavira, and Sarnath, transforming them into "dynamic, engaging cultural hubs."

The government will establish guided pathways at these sites, incorporating immersive storytelling and technologies to support conservation laboratories, interpretation centers, and tour guides.

Presenting the Union Budget 2026-27 in Parliament, Nirmala Sitharaman said, "I propose to develop 15 archaeological sites, including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace into vibrant, experiential cultural destinations. Excavated landscapes will be opened to the public through curated walkways. Immersive storytelling skills and technologies will be introduced to help conservation labs, interpretation centres, and guides."

FM Sitharaman also announced four telescope infrastructure facilities to be set up or upgraded.

Stock Market LIVE: Finance Minister Nirmala Sitharaman, in the Union Budget for 2026, has suggested a fund of ₹1,000 crore for Artificial Intelligence (AI) through the IndiaAI Mission for the fiscal year 2026-27. This amount is half of the proposed budget from the previous year but an increase of ₹200 crore from the revised estimates.

In the Budget, the finance minister adjusted last year's allocation from ₹2,000 crore to ₹800 crore (RE).

The budget will be allocated through the IndiaAI Mission, which is the nation’s key initiative aimed at establishing India as a global leader in AI.

Stock Market LIVE: According to Jashan Arora, Director at Master Trust Group, markets are likely to remain volatile and largely range-bound in the near term as higher transaction costs weigh on investor sentiment, particularly in the derivatives segment. The increase in STT and F&O-related costs could dampen trading volumes, putting near-term pressure on brokerages and exchanges that are heavily dependent on market activity. This may also lead to more cautious participation from retail traders, adding to short-term uncertainty.

The broader macro picture remains supportive. The Budget strikes a careful balance between growth and fiscal discipline, reinforcing the government’s commitment to capital expenditure without compromising on consolidation. This is constructive for the medium-term outlook, especially for banks and infrastructure companies.

Capex-led growth is expected to drive sustained credit demand, improving asset quality and earnings visibility for banks. Infrastructure players should benefit from continued public spending and project execution. Overall, investors may see selective stock-specific opportunities, with a clear preference for banks and infrastructure over high-risk capital market-linked stocks in the current environment.

Stock Market LIVE: According to Swapnil Aggarwal, Director, VSRK Capital on Budget Signals Trading Cost Rise but Expands Foreign Access to Indian Equities, Union Budget 2026 marks a critical phase for the Indian capital markets. Although the increase in Securities Transaction Tax (STT) on Futures from 0.02 % to 0.05 % and on Options premiums has caused short-term setbacks in derivatives trading volumes and impacted brokerage and exchange stocks heavily, it also symbolizes the Government’s effort to standardize market participation costs. This has resulted in sell-offs in major broking stocks and increased market volatility. ( STT is only in equity not commodity).

However, the strategic move to enhance the Portfolio Investment Scheme by allowing foreign individuals to purchase Indian stocks directly with the individual limit hiked from 5 % to 10 % and the overall limit raised from 10 % to 24 % is highly significant. This ease in market access for NRIs and foreign investors takes place when traditional FPI investments have gradually slowed down, and could open doors to deeper and more stable capital investments in Indian equities.

Going forward, we forecast rotational investments in infrastructure, financials, specific manufacturer and export-oriented sectors, and long-term investors may also gain from enhanced market liquidity and foreign participation due to these reformative initiatives.

Stock Market LIVE: The following are the highlights of the Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman in the Lok Sabha.

1. No change in Income Tax rates
2. Securities Transaction Tax (STT) raised on futures and options (F&O) to 0.05 pc and 0.15 pc
3. TCS on sale of overseas tour packages slashed to 2 pc
4. TCS on overseas education, medical expenses under LRS (Liberalised Remittance Scheme) cut to 2 pc
5. New Income Tax Act, 2025, to be implemented from April 1; rules, forms to come soon
6. ITR filing date for non-audit businesses extended by a month till August 31
7. Tax holiday up to 2047 for any foreign company for providing services globally from data centres in India
8. Fiscal deficit pegged at 4.3 pc of GDP in FY27, lower than 4.4 per cent in FY26
9. Debt-to-GDP to be cut to 55.6 pc from 56.1 pc in the current fiscal year
10. Total Budget size at ₹53.5 lakh crore
11. Govt capital expenditure hiked to ₹12.2 lakh crore from ₹11.11 lakh crore in FY26
12. ₹1.4 lakh crore to be devolved to states as tax share.
13. Net tax receipts estimated at ₹28.7 lakh crore
14. Gross market borrowings estimated at ₹17.2 lakh crore
15. Budget focuses on 3 Kartavyas -- accelerating growth, fulfilling aspirations, and Sabka Sath, Sabka Vikas
16. Reform express on track, over 350 reforms rolled out
17. Proposes ₹10,000 crore SME Growth fund to create future champions
18. Trust-based systems for Customs, advance ruling validity period extended to 5 years
19. High-level committee to increase the services sector contribution to 10 pc by 2047.

(With inputs from PTI)

During the presentation of the Budget, Finance Minister Nirmala Sitharaman introduced a series of indirect tax initiatives in the Union Budget for 2026-27, designed to further streamline the tariff framework, bolster domestic production, enhance export competitiveness, and address duty inversion.

A significant aspect of the Budget proposals is the ongoing simplification of customs duty exemptions.

To continue eliminating long-standing customs duty exemptions, she suggested eliminating specific exemptions for products made in India or for which imports are minimal.

She suggested raising the threshold for duty-free imports of certain inputs utilized in seafood processing for export from the existing 1 percent to 3 percent of the FOB value from the prior year's export revenue.

Additionally, she recommended permitting duty-free imports of specified inputs, which are currently authorized for leather or synthetic footwear exports, to also apply to exports of Shoe Uppers.

Stock Market LIVE: The government has allocated a budget of ₹7.8 lakh crore to the Defence Ministry for the fiscal year 2026-27. The defence forces will receive ₹2.19 lakh crore designated for modernization through the Capital Outlay budget.

In total, the defence ministry will experience a 15% increase in its budget allocation. For FY26-27, there is a 21.84% rise in capital outlay, increased from ₹1.80 lakh crore in FY 25-25 to ₹2.19 lakh crore.

The Defence Ministry has significant projects underway, including contracts for Rafale fighter jets, submarines, and unmanned aerial vehicles.

The civil defence budget has been decreased by 0.45% compared to last year's ₹28,554.61 crore.

Stock Market LIVE: "The Union Budget continued its focus on clean energy with measures such as exemption of the basic custom duty (BCD) for capital goods for manufacturing Lithium-ion cells for batteries as well as battery energy storage systems (BESS). Further, budget also provides BCD exemptions on import of goods required for all nuclear power plants till 2035.

Both these measures can aid in the tariff competitiveness of BESS as well as nuclear power projects in India. Further, increased allocation on PM Surya Ghar Muft Bijli Yojana and continued focus on PM Kisan Urja Suraksha evam Utthaan Mahabhiyan will support the renewable capacity addition in the country.

Additionally, the tax relief towards data center investments for foreign entities providing cloud servicing from India is likely aid the renewable capacity addition, given the sustainability focus," said Ankit Jain, Vice President & Co Group Head - Corporate Ratings, ICRA.

Stock Market LIVE: Shares of Paytm slumped over 5% on Sunday's trading session. The fell post Union Budget 2026 reduced UPI incentives allocation for FY27 to ₹2,000 crore from the FY26 Revised Estimate of ₹2,196 crore, signaling moderated spending amid fiscal consolidation.

Stock Market LIVE: “The Budget reflects a clear shift towards strengthening the balance sheets and resilience of MSMEs, agricultural and rural enterprises, with a focus on formalisation and sustainable credit growth. Measures such as equity support for MSMEs, wider adoption of TReDS, introduction of ‘Corporate Mitras’, risk-sharing mechanisms for lenders, and targeted interventions across agri and allied sectors should improve cash-flow predictability and reduce structural vulnerabilities at the grassroots level.

For small finance banks, and particularly for Capital Small Finance Bank as India’s first SFB with deep roots in rural and semi-urban markets, these measures have direct and meaningful implications. Greater formalisation and stronger market linkages enable sharper credit assessment, expansion of MSME and agri value-chain financing, and responsible portfolio growth while maintaining asset quality, supporting first-generation entrepreneurs, and advancing inclusive growth," said Sarvjit.

Stock Market LIVE: Stock prices of market infrastructure and brokerage firms experienced a significant decline, with BSE, Angel One, and Groww dropping by more than 10%. In addition to these, the shares of Central Depository Services (India) and Nuvama Wealth Management Ltd. also saw a decrease.

Stock Market LIVE: According to Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, allowing individuals resident outside India to invest domestically appears to be a positive reform. It could prove to be a step toward widening India’s capital market access, improve liquidity and deepen market participation .

However, wide-ranging implications of this announcement can be assessed only after more details are out. Until operational details emerge, investors should view this as a directional signal rather than a near-term catalyst.

Stock Market LIVE: Indian stocks fell sharply in a widespread sell-off on Sunday following the federal budget's increase in the securities transaction tax for derivatives trading, which left investors disappointed as it lacked significant incentives to attract foreign investment.

As of 1:24 IST, the Nifty 50 decreased by 0.7% to 25,140, while the Sensex dropped by 0.61% to 81,766.42.

Out of the 16 major sectors, 13 experienced declines. The broader categories of small-cap and mid-cap stocks fell by 1.9% and 1.2%, respectively.

The Indian government announced a substantial increase in the securities transaction tax (STT) on futures from 0.02% to 0.05% and on options from 0.1% to 0.15%.