Budget 2026: STT Hike Tanks Angel One Shares, Reshapes Broking Outlook

The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, introduced significant changes to the Securities Transaction Tax (STT) on futures and options (F&O) transactions. These proposals triggered an immediate and sharp negative reaction across the capital markets, particularly impacting broking and exchange stocks. Angel One Ltd., a prominent fintech platform and broking agency, saw its shares plunge by as much as 13.5% during a special live weekend trading session, reflecting investor apprehension regarding the potential implications for trading volumes and profitability within the derivatives segment.

Key Budget Proposals and Immediate Market Reaction

The core of the market's concern stemmed from the proposed increase in STT rates for derivatives. Under the Budget 2026 proposals, the STT on futures transactions was raised from 0.02% to 0.05%, effectively more than doubling the tax burden. Similarly, the STT on options premium was increased from 0.10% to 0.15%, and the levy on options exercise climbed from 0.125% to 0.15%. Finance Minister Sitharaman stated the move aimed at