Indian Equity Markets Exhibit Caution Following Budget-Induced Volatility

Indian equity benchmarks commenced the trading session with subdued momentum on Monday, reflecting investor apprehension in the aftermath of recent fiscal policy adjustments. The Nifty50 index hovered below the 24,800 threshold, while the BSE Sensex registered a decline exceeding 100 points. This cautious opening follows a significant 2% market correction observed in the previous session, primarily attributed to the Union Budget's announcement of an increased Securities Transaction Tax (STT) on futures and options contracts. The market's tepid response underscores the sensitivity of investor sentiment to regulatory and fiscal changes, particularly within the derivatives segment. Analysts are closely monitoring the situation to assess whether this represents a temporary recalibration or the onset of a more sustained period of consolidation. The interplay between policy directives and market performance remains a critical focal point for institutional and retail participants navigating the current economic landscape.