• HDFC securities
• 01 Feb 2026
• Knowledge Centre

While this budget may not be characterised as transformative, it reflects the Finance Minister and her team’s continued pragmatic approach to economic management.

 

Today’s market reaction stems primarily from the revised Securities Transaction Tax framework, which now applies 0.05% to futures contracts (up from 0.02%) and 0.15% to options, representing a measured intervention in the derivatives market.

 

The immediate correction appears to be a knee-jerk response. I remain confident that investors should maintain their market participation, focusing strategically on sectors with strong earnings visibility rather than capital-intensive plays.

 

What distinguishes this budget is the Finance Minister’s exceptional ability to calibrate policy across diverse sectors and segments. The devil truly lies in the details, and I encourage stakeholders to carefully examine the fine print. Therein lie numerous thoughtful provisions that will become apparent over time.

 

The cumulative effect of such well-considered government initiatives, combined with favourable economic trends, positions us well for sustainable growth and attractive investment returns through FY27.

 

While the enhanced STT regime may create near-term headwinds for capital market participants, it reflects a long-term vision for market stability and maturity. This trade-off should ultimately benefit the broader financial ecosystem.