Budget Spurs Market Selloff And Higher Borrowings

Finance Minister Nirmala Sitharaman presented the 2026–27 Union Budget, prompting a sharp market reaction as Sensex and Nifty fell. The government raised the Securities Transaction Tax on derivatives—futures to 0.05% and options to 0.15%—and projected a fiscal deficit of Rs 17 lakh crore with nearly Rs 11 lakh crore in market borrowings. These measures may raise borrowing costs and dampen foreign and domestic investor sentiment.