Intelligence Analysis: Indian Equity Markets Experience Historic Budget-Day Volatility, Sensex Plunges 1,500 Points

Our intelligence assessment indicates that Indian equity markets exhibited extreme volatility during the Union Budget presentation, culminating in the largest single-day decline on a Budget day in recent history. The benchmark Sensex plummeted approximately 1,500 points, breaching the 81,000 threshold for the first time in four months. Initial market sentiment appeared cautiously optimistic, with the index rallying over 400 points during the Finance Minister's opening remarks. However, the proposed increase in Securities Transaction Tax (STT) triggered a sharp sell-off, driving the Sensex down approximately 1,100 points within a brief period. A partial recovery emerged by mid-session, narrowing losses to around 600 points, but sustained selling pressure ultimately dominated trading activity. This dramatic fluctuation underscores heightened investor sensitivity to fiscal policy adjustments and suggests potential concerns regarding market liquidity and transaction costs. The breach of the 81,000 psychological support level warrants close monitoring for potential follow-through selling in subsequent sessions. This event highlights the critical intersection between fiscal policy announcements and capital market stability, with implications for both domestic and international investment flows into Indian equities.