In a dramatic reaction to Finance Minister Nirmala Sitharaman's Union Budget for fiscal year 2024-25, the Indian stock market saw a significant plunge. The Sensex dropped 1,266.17 points to close at 79,235.91, while the Nifty tumbled 435.05 points to 24,074.20, following the announcement of a hike in the Securities Transaction Tax (STT) on Futures and Options (F&O) securities.

Sitharaman's seventh consecutive budget presentation, marking a historic milestone as the longest-serving Finance Minister, included a series of impactful announcements aimed at bolstering economic growth and enhancing development across various sectors. The budget outlined nine primary priorities: enhancing agricultural productivity and resilience, fostering employment and skills development, advancing inclusive human resource development and social justice, supporting manufacturing and services, improving urban development, ensuring energy security, investing in infrastructure, encouraging innovation and research, and implementing next-generation reforms.

Among the notable changes, Sitharaman announced an increase in the standard tax deduction for salaried employees from ₹50,000 to ₹75,000 under the new income tax regime. Additionally, the 2% equalisation levy on e-commerce transactions was withdrawn, and the angel tax was abolished for all investors in startups. Significant infrastructure investments and special financial support were also allocated for Bihar and Andhra Pradesh, aiming to drive growth in these regions.

The market's sharp decline came in response to the hike in STT on F&O securities, which created unease among investors. The Sensex initially surged as the budget session began but soon fell into negative territory, reflecting investor concerns about the new tax measures.

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