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

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