Indian stocks tumbled Feb. 2, 2026, after a surprise STT hike on derivatives in the Union Budget triggered a sell-off.

Indian stocks fell sharply on February 2, 2026, after the Union Budget 2026-27 included a surprise increase in the Securities Transaction Tax (STT) on derivatives, triggering a sell-off. The Sensex fell 1,546.84 points (1.88%) to 80,722.94, while the Nifty 50 fell 495.20 points (1.96%) to 24,825.45 in a special Sunday session. BSE and GROWW shares fell 5-10%, while PSU banks and capital market firms were pressured. Despite the decline, Hero MotoCorp reported a 26% year-on-year sales increase in January 2026, while biopharma stocks rose on government support for India as a global biologics hub. Other updates covered corporate results, cybersecurity incidents, tax demands, and strategic disinvestment progress.