Budget 2026: F&O Trading Hit
STT Hike Confirmed
- Securities Transaction Tax on Futures rises from 0.02% to 0.05%
- Impacts broking margins and F&O trading volumes
Market Pressure
- BSE, broking stocks face immediate headwinds
- Higher transaction costs curb retail derivatives activity
Key Takeaway: STT tripled on futures squeezes leveraged trades โ brokers, algo players under margin pressure short-term.
STT Hike Confirmed
- Securities Transaction Tax on Futures rises from 0.02% to 0.05%
- Impacts broking margins and F&O trading volumes
Market Pressure
- BSE, broking stocks face immediate headwinds
- Higher transaction costs curb retail derivatives activity
Key Takeaway: STT tripled on futures squeezes leveraged trades โ brokers, algo players under margin pressure short-term.
๐3
*Calling school kids on a Sunday and punishing them for coming to school* ๐๐
#*BUDGET*
๐๐
#*BUDGET*
๐๐
๐7๐คฃ4๐ค3
Future trading will be very difficult. Option still less impact but there will additional cost.
๐3
*The Government of India has increased the Securities Transaction Tax (STT) on derivatives (Futures & Options) in the Union Budget 2026-27.*
This impacts everyone who trades Nifty Futures
๐ Assumptions
Nifty price: 25,000
Lot size: 65
Contract value = 25,000 ร 65 = โน16,25,000
STT applicable on sell side only
๐งฎ NIFTY FUTURES โ STT CALCULATION
๐น Before Budget
STT rate: 0.02%
STT = 0.02% ร 16,25,000
= 0.0002 ร 16,25,000
= โน325
๐น After Budget
STT rate: 0.05%
STT = 0.05% ร 16,25,000
= 0.0005 ร 16,25,000
= โน812.50
๐ Impact per 1 Lot (65 qty)
STT Before - โน325
STT After - โน812.50
Extra Cost - โน487.50
This impacts everyone who trades Nifty Futures
๐ Assumptions
Nifty price: 25,000
Lot size: 65
Contract value = 25,000 ร 65 = โน16,25,000
STT applicable on sell side only
๐งฎ NIFTY FUTURES โ STT CALCULATION
๐น Before Budget
STT rate: 0.02%
STT = 0.02% ร 16,25,000
= 0.0002 ร 16,25,000
= โน325
๐น After Budget
STT rate: 0.05%
STT = 0.05% ร 16,25,000
= 0.0005 ร 16,25,000
= โน812.50
๐ Impact per 1 Lot (65 qty)
STT Before - โน325
STT After - โน812.50
Extra Cost - โน487.50
โค6
The BJPโs rise to power in 2014 was significantly supported by the Indian middle class, which expected economic stability and growth. However, over more than two decades in government, a series of policy decisionsโranging from taxation to compliance burdensโhave gradually placed increasing financial pressure on that very constituency.
๐ฏ5๐3