Budget 2026-27 hikes STT on F&O; big blow to speculative traders?
News by Aliceblue News Desk
02 Feb 2026
Introduction
The government announced an increase in the securities transaction tax on futures and options trades, effective April 1, to reduce speculation and enhance tax collections.
STT on F&O Hiked
Finance Minister Nirmala Sitharaman announced an increase in the Securities Transaction Tax (STT) on futures and options (F&O) trades, effective April 1, aiming to curb excessive speculation and raise tax collections.
STT on futures will rise from 0.02 per cent to 0.05 per cent of the traded price. On options, the levy will increase from 0.1 per cent to 0.15 per cent. Exercising options will also be taxed 0.15 per cent.
This is the second STT hike since 2024. The last revision was announced in the Union Budget for 2024. The government aims to strengthen tax collection while moderating risky speculative trades.
STT collections for FY27 are estimated at ₹73,700 crore. The FY26 Budget Estimate was ₹78,000 crore, while the Revised Estimate stands at ₹63,670 crore. FY24 actual collections were ₹52,197 crore.
The reduction in STT mop-up in FY26 follows a drop in trading volumes after Sebi tightened trading rules to curb speculation. Experts say the increase could raise collections by ₹10,000 crore if markets remain stable.
“We are only touching STT on F&O transactions. There is no change on STT for other transactions. When there is speculation which can be highly risky – leading to losses by investors – this nominal increase is aimed at high speculation to discourage it,” the FM said at a press conference after the Budget announcements.
Following the announcement, shares of market infrastructure and stock brokerage companies fell. Capital market stocks such as BSE, NSDL, Groww, and Angel One are likely to remain in focus in coming weeks.
Stocks to Watch
BSE
On February 2, 2026, BSE Limited opened at ₹2,565.30, down 0.51% from its previous close of ₹2,578.10. The stock reached a high of ₹2,694.50 (4.53%) and a low of ₹2,530.00. By 11:34 AM, it traded at ₹2,648.50, a 2.73% increase, with a market cap of ₹1,07,917.97 crore.
NSDL
On February 2, 2026, National Securities Depository Ltd opened at ₹962.80, down 0.27% from its previous close of ₹963.45. The stock reached a high of ₹962.80 and a low of ₹946.00. By 11:35 AM, it traded at ₹947.95, a 1.61% decrease, with a market cap of ₹18,959.00 crore.
CDSL
On February 2, 2026, Central Depository Services (India) Limited opened at ₹1,229.00, down 0.09% from its previous close of ₹1,230.30. The stock reached a high of ₹1,230.00 and a low of ₹1,195.00. By 11:35 AM, it traded at ₹1,219.30, a 0.89% decrease, with a market cap of ₹25,483.37 crore.
Groww
On February 2, 2026, Billionbrains Garage Ventures Ltd (Groww) opened at ₹166.80, down 0.71% from its previous close of ₹168.00. The stock reached a high of ₹167.00 and a low of ₹157.00. By 11:37 AM, it traded at ₹158.30, a 5.77% decrease, with a market cap of ₹97,728.03 crore.
Angel One
On February 2, 2026, Angel One Ltd opened at ₹2,310.65, down 0.08% from its previous close of ₹2,312.45. The stock reached a high of ₹2,380.00 and a low of ₹2,260.05. By 11:38 AM, it traded at ₹2,305.75, a 0.29% decrease, with a market cap of ₹20,949.00 crore.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
FAQs
Q: What changes were made to STT on futures and options?
A: STT on futures rises from 0.02% to 0.05%, on options from 0.1% to 0.15%, effective April 1.
Q: Why has the government increased STT on F&O trades?
A: The increase aims to curb excessive speculation, reduce retail losses, and boost tax collections in FY27.
Q: Which capital market stocks may be affected by this change?
A: Stocks such as BSE, NSDL, Groww, and Angel One are likely to remain in focus after the increase.
News Author
Aliceblue News Desk
