Groww shares fell 6.5% on Monday, February 2, trading near ₹160
STT hike on derivatives in Union Budget 2026 triggered the sell-off
Securities Transaction Tax on futures increased from 0.02% to 0.05%.
Options premium tax rose to 0.15%, significantly raising costs for retail traders
Groww Shares Fall Again On STT Hike on F&O, Down Nearly 12% in Two Session
Finance Minister Nirmala Sitharaman’s proposal to hike STT on futures by 150% has raised fears of a volume slump in the F&O segment
Summary
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Online brokerage platform Groww’s shares fell about 6.5% on Monday, a day after Finance Minister Nirmala Sitharaman proposed an increase in the Securities Transaction Tax (STT) on futures and options (F&O) in her Union Budget 2026 speech.
Groww’s parent company, Billionbrains Garage Ventures, opened at ₹167 on Monday, down slightly from its previous close of ₹168.10, and slid to an intraday low of ₹157. By around 1:15 pm, the stock was trading near ₹159.9.
Notably, markets were open on Sunday for a special trading session as the Union Budget was presented, during which Groww’s shares had already slumped 13.85% to an intraday low of ₹152.52 following the tax announcement.
Budget Proposes STT Hike on F&O
Under the Budget 2026 proposals, the securities transaction tax on futures contracts will be increased to 0.05% from 0.02%. The STT on options premiums will rise to 0.15% from 0.10%, while the levy on exercised options will be hiked to 0.15% from 0.125%.
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Together, these changes significantly raise trading costs for derivatives investors and could weigh on volumes in a segment that has seen explosive growth in recent years.
With futures and options accounting for a substantial share of revenues for stock exchanges and retail brokerages, the sector is expected to feel the impact of the policy shift sharply.
Addressing the media during the post-Budget press conference, Sitharaman said the move was aimed at curbing “high speculation” and reducing losses among small retail investors.
Sensex, Nifty Fall
The broader market also reacted negatively to the STT hike. Benchmark indices Sensex and Nifty 50 fell nearly 2% on Sunday, during the special trading session. At the close, the BSE Sensex dropped 1.88% to 80,722.94, while the NSE Nifty 50 declined 1.96% to settle at 24,825.45.
Broader indices remained under pressure as well. The BSE MidCap Select Index fell 1.71% to 16,525.92, while the BSE SmallCap Select Index slid 2.75% to 7,447.95. Overall, the market capitalisation of all BSE-listed companies declined by ₹9.72 lakh crore to ₹450.15 lakh crore.
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