FX.co ★ India Shares Hit 4-Month Low After Budget Sell-Off

On Monday morning, the BSE Sensex experienced a decline of 123 points, or 0.2%, settling at 80,560, marking its lowest point since September 30. This downturn followed a widespread sell-off during Sunday’s special trading session, triggered by Finance Minister Nirmala Sitharaman's announcement of an increase in the securities transaction tax on futures and options in the 2026 Budget. The benchmark index had already fallen approximately 2% in the previous session, registering its largest percentage drop on a budget-day trading session in six years, as investors analyzed the government's financial plan for the 2026–27 fiscal year. Concerns over a higher gross borrowing target, which caused bond yields to rise, further impacted market sentiment. Market participants were also preparing for the upcoming release of US jobs data later in the week. Across sectors, most were in negative territory, with technology, banking, and automotive stocks leading the declines. Specific stocks affected included State Bank of India, which dropped by 1.9%, Titan, which fell by 1.7%, ITC, which decreased by 1.6%, Infosys, which slipped by 1.5%, and Hindustan Unilever, which was down by 1.2%.