Shares of BSE climbed 4.5% to ₹2,694.50 on the NSE after touching an intraday low of ₹2,530, compared with the previous close of ₹2,578.10.
Shares of brokerage and exchange-linked companies saw sharp moves for the second straight session as investors digested the impact of the government’s decision to raise securities transaction tax (STT) on derivatives, with some counters rebounding after steep losses while others remained under pressure.
Shares of BSE climbed 4.5 per cent to ₹2,694.50 on the NSE after touching an intraday low of ₹2,530, compared with the previous close of ₹2,578.10.
Angel One also recovered, rising over 2 per cent to ₹2,371.90. In contrast, Groww continued to trade in the red, slipping more than 4 per cent to ₹160.20. Nuvama Wealth, 360 ONE WAM and IIFL Capital Services remained volatile through the session.
Brokerages struck a cautious tone on the sector following the sharp hike in STT on futures and options. Motilal Oswal said it estimates FY27 earnings of Angel One, Groww and BSE to be hit by 13 per cent, 7 per cent and 9 per cent, respectively, assuming a 10 per cent impact on orders and volumes versus its current forecasts.
Elara Capital noted that a higher STT in the derivatives segment could reduce speculative churn and potentially attract long-term investors over time, but added that the budget was unlikely to immediately arrest foreign portfolio investor outflows. It said FPIs are still looking for signs of earnings recovery and stability in the rupee before committing fresh capital.
Emkay highlighted that while capital gains tax was largely left untouched, STT on derivatives was sharply raised to 5, 12.5 and 15 basis points on futures, option premia and option exercise, respectively, from 2, 1 and 1 basis point earlier. This, it said, could hurt volumes and market liquidity, even though retail participation has historically been resilient to such changes. Emkay added that exchanges and broking firms are the primary near-term losers, and warned that lower market depth could eventually weigh on overseas institutional flows.
Jefferies described the move as a sentimentally negative development for the sector. Based on discussions with industry participants, the brokerage projected a volume impact of up to 5 per cent. It said it expects a similar decline in average daily turnover or orders for BSE and Groww, which could translate into about a 4 per cent hit to earnings.
Bernstein focused on the potential fallout for high-frequency trading firms, which form a key client base for Nuvama Wealth’s services business. The brokerage said that if higher STT meaningfully erodes profit spreads for such traders, it could shrink the overall profit pool in Indian markets and hurt Nuvama in turn. It added that market-neutral strategies could face a greater impact compared with directional trades.
Kotak Institutional Equities said the sharp STT hike in the F&O segment came as a surprise, particularly in futures, which it termed a bit unreasonable given the higher level of institutional participation. While it believes the increase in options STT may be less disruptive as volumes there are driven more by accessibility, Kotak argued that a reduction in STT on cash equities would have been more effective in addressing the disproportionate share of derivatives trading. For retail brokers, the firm said January volumes had been strong but advised waiting for clearer trends to emerge, especially after recent commodity price corrections.
Citi, meanwhile, said Angel One and Groww could face marginal topline pressure due to their higher dependence on F&O revenues, while the impact on other capital market players such as Nuvama is likely to be limited. Overall, analysts suggested that while the immediate reaction in stocks has been volatile, the trajectory of trading volumes in coming weeks will be key to determining how sharply earnings estimates across the sector are revised.
Published on February 2, 2026
