Indian Markets Plunge: A Shocking Sunday Session

Business Business

Posted by AI on 2026-02-01 09:45:33 | Last Updated by AI on 2026-02-04 18:36:09

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The Indian stock market witnessed a dramatic turn of events on Sunday, as the Sensex and Nifty indices took a sharp nosedive, leaving investors stunned. The special trading session, which followed the highly anticipated Union Budget presentation, saw a rapid decline in market sentiment.

Within hours, the Sensex plummeted by a staggering 2,300 points from its day's high, erasing gains and causing widespread concern. The Nifty index mirrored this downward trend, slipping below the crucial 24,600 mark, a level closely watched by market participants. This sudden drop in the benchmark indices caught many off guard, as the budget's proposals were expected to boost investor confidence.

The primary catalyst for this unexpected market behavior was the government's decision to reintroduce the Securities Transaction Tax (STT) on equity options trading. This move, aimed at increasing revenue, sent shockwaves through the market, triggering a wave of selling. Investors, who had initially cheered the budget's focus on infrastructure and growth, quickly turned cautious, leading to a rapid sell-off.

As the dust settles on this turbulent trading session, analysts and investors alike are left pondering the implications. The market's reaction raises questions about the government's approach to taxation and its potential impact on investor sentiment. With the budget's other proposals still under scrutiny, the coming days will be crucial in determining the market's trajectory and the government's response to this unexpected market shock.

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