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Sharp hike in STT pulls Nifty and Sensex down by 2%; brokerages feel the heat

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Sharp hike in STT pulls Nifty and Sensex down by 2%; brokerages feel the heat
Sunday circled back to a period when most of today’s active traders weren’t even born—July 2004. After a surprise summer poll victory, the then finance minister P Chidambaram introduced the Securities Transaction Tax (STT) for the first time in the cash market. That caused Indian equities to crater. Sunday was no different. With India now the global derivatives leader, higher STT on futures and options caused the Nifty and the Sensex to lose 2% each.
Screenshot 2026-02-02 061958Agencies

CURBING SPECULATION
Sunday’s proposal, finance minister Nirmala Sitharaman said, seeks to curb F&O speculation. “Higher taxation across both the F&O segments will affect market participants across the board including retail traders, institutions, high-frequency traders, proprietary desks, algorithmic traders, brokers and exchanges,” said Rajesh Palviya, head of technical and derivatives research, Axis Securities.
The Centre raised the STT—a levy collected at the time of the trade—on futures to 0.05% from 0.02% and on options premium, and the exercise of options, to 0.15% from 0.10% and 0.125%, respectively. Brokers said futures outgo would rise 150%. For instance, STT on one lot of Nifty Futures at 25,000 levels will increase to Rs 812 from Rs 325 come April 1. On options, the tax on premiums will climb 50%. On exercising options, it will be 20% higher. “In the near term, the sharp increase in STT is a headwind, as it materially raises hedging and trading costs,” said Ankur Jhaveri, MD & CEO, institutional equities, JM Financial Institutional Securities. “This is likely to impact market liquidity and increase impact costs.”

BROKERS BATTERED

Brokers were top losers on Sunday, with the Nifty’s Capital Markets index tumbling 5.8%. Angel One fell 8.6%. BSE, Nuvama Wealth, CDSL, and Billionbrains Garage Ventures (Groww) dropped between 5% and 8%. “Brokers have already been seeing a drop in active clients, with derivatives volumes trending lower over the past year, and we expect this trend to continue after the announcement,” said Ajit Mishra, senior vice president–research, Religare Broking. “However, retail participation is unlikely to be significantly impacted, as most retail traders operate with small lot sizes and are typically options buyers, and will see a lower cost impact.”

Palviya said brokers are struggling to retain clients due to the pressure on returns in the past 15- 16 months. “The rise in derivatives trading costs is set to further strain their profitability,” he said. The move is a setback for foreign funds struggling with underperformance in Indian stocks. “The cost of trade for FPIs will definitely go up, and may impact their trading activities, as they use derivatives for hedging their cash market positions,” said Prayesh Jain, capital market analyst, institutional equities, Motilal Oswal Financial Services.
“We may see the effect from the next quarter onward as the new taxes will be implemented from April 1.” Foreign Portfolio Investors (FPIs) net sold shares worth `31,901 crore in January. “Higher transaction costs remain a concern for the investor community, and FIIs may view India less favourably when comparing trading costs across global markets,” said Jhaveri.

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Brightstar Lottery stock hits 52-week low at 12.6 USD

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Stocks Can’t Recover While Oil Prices Surge. Why the Fed’s Unlikely to Help.

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Stocks Can’t Recover While Oil Prices Surge. Why the Fed’s Unlikely to Help.

Stocks Can’t Recover While Oil Prices Surge. Why the Fed’s Unlikely to Help.

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US holds interest rates as Iran war triggers oil shock

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US holds interest rates as Iran war triggers oil shock

The US central bank is moving cautiously, despite pressure from the president to cut interest rates.

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Big Tech’s Huge Conglomerate Premium

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Datassential reveals top emerging foodservice chains

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Datassential reveals top emerging foodservice chains

Top chains specialized in focused concepts and tapped into trending flavors.

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Hewlett Packard Enterprise's AI Story Moved To The Network Layer

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Hewlett Packard Enterprise's AI Story Moved To The Network Layer

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Iran’s military escalation backfiring, former Israeli general consul says

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Iran's military escalation backfiring, former Israeli general consul says

Iran’s latest military escalation is backfiring on the global stage as new strikes and widening regional fallout expose what a former Israeli consul general in New York called a critical miscalculation by Tehran.

Ambassador Ido Aharoni, who served as consul general of Israel in New York, joined FOX Business’ “Mornings With Maria” on Wednesday to discuss the broader implications of Iran’s recent actions and the shifting dynamics across the Middle East.

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Iran flag in rubble and debris

An Iranian flag lies amid rubble and debris in Tehran. (Atta Kenare/AFP via Getty Images)

“Iran made a terrible mistake attacking Cyprus, thus bringing in the European Union,” Aharoni told host Maria Bartiromo.

He said Iran’s decision to expand its targets is drawing in new international pressure and raising concerns far beyond the region.

IRAN WAR UNLIKELY TO TRIGGER GLOBAL SUPPLY CHAIN CRISIS, GOLDMAN SACHS SAYS

“Iran is presenting a threat to the entire world,” Aharoni said.

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The former consul general argued the U.S. and Israel’s ongoing military campaign is reshaping deterrence and exposing the regime’s vulnerabilities.

“For the first time since 1979, Iran is being punished for its motivation, for its ideology, not just for their actions… This sends a very powerful message throughout the region,” Aharoni said.

“This is how you restore deterrence… This is exactly what is being done.”

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PRINCE REZA PAHLAVI HAS ‘MAJORITY SUPPORT’ AMONG IRANIANS AS PRESSURE BUILDS ON REGIME, CHIEF OF STAFF SAYS

He said Iran’s long-term position is weakening as a result of Operation Epic Fury. 

“They’re not going to be the same regional power that they were before or after this. It will take them decades to rebuild the infrastructure that was destroyed,” Aharoni explained.

Aharoni underscored that Iran’s actions are impacting its own population as instability grows.

“The Iranians are the number one victims of their own regime,” Aharoni said.

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JD Vance vows gas prices will drop as Iran conflict ends

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JD Vance vows gas prices will drop as Iran conflict ends

The Trump administration is working to lower gas prices as motorists continue to pay more at the pump since the outbreak of the Iran war, Vice President JD Vance said Wednesday, noting that the increase is temporary. 

Vance was at the Engineering Design Services, Inc. manufacturing plant in Auburn Hills, Michigan, where he was asked about rising gas prices.

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“Gas prices are up, and we know they’re up,” Vance said. “We know that people are hurting because of it, and we’re doing everything that we can to ensure that they stay lower.”

Vance said prices will eventually start to decline. 

AMERICANS HIT WITH SOARING ELECTRICITY BILLS AS PRICE HIKES OUTPACE INFLATION NATIONWIDE

Vice President JD Vance

 Vice President JD Vance speaks onstage at Engineering Design Services, Inc. on Wednesday in Auburn Hills, Michigan.  (Bill Pugliano/Getty Images / Getty Images)

“The president said this, and I certainly agree with it. This is a temporary blow,” he said. “What happened under the Biden administration is that gas prices were high for four years. Gas prices are higher right now, and frankly, they’re not even as high as they were during certain parts of the Biden administration.”

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Prices have steadily risen following U.S. and Israeli attacks against Iran in recent weeks. 

As of Wednesday, the average price for a regular gallon of gas was $3.84, up from $2.92 a month ago, according to AAA.

GAS PRICES SURGE, PINCHING AMERICANS AND HANDING THE GOP A NEW MIDTERM HEADACHE

Gas pump

A diesel fuel pump at a Chevron gas station in Seattle, Washington, US, on Monday, March 9, 2026. (M. Scott Brauer/Bloomberg via Getty Images / Getty Images)

In recent weeks, the administration has worked with its allies to release hundreds of millions of barrels of oil from petroleum reserves in an effort to put downward pressure on prices, Vance said. 

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Many U.S. allies are “suffering” much more than many Americans, Vance said. 

“So as much as we’ve got to focus on getting these gas prices down, the reality is, overseas they’re feeling it far worse than we did because we’ve taken the steps to protect our energy economy.”

Once military operations against Iran conclude, prices should decrease to previous levels, said Vance. 

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“We promise that when this conflict draws to a close, when this operation draws to close, we’re going to see those energy prices come back down to reality, because that’s what the president promised to do,” he said. “He delivered an energy-dominant agenda. It’s made us much more secure in the face of these things. But yeah, we’ve got a rough road ahead of us for the next few weeks, but it’s temporary.”

The U.S. produces more oil than any other country, according to the Energy Information Administration (EIA). As of 2023, the latest data available, the U.S. produces 1roughly3 millions barrels per day, followed by Russia and Saudi Arabia.

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Adobe: 3 Reasons Not To Buy, 1 Reason Not To Sell After Q1

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Adobe: 3 Reasons Not To Buy, 1 Reason Not To Sell After Q1

Adobe: 3 Reasons Not To Buy, 1 Reason Not To Sell After Q1

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Catalans Favored to Advance (Watch Livestream Info)

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Frenkie de Jong of FC Barcelona celebrates scoring his team's opening goal with team mates during the Supercopa de Espana Semi Final match between Real Sociedad and FC Barcelona at Estadio Nuevo Arcangel on January 13, 2021 in Cordoba, Spain.

BARCELONA, Spain — FC Barcelona hosts Newcastle United on Wednesday in the decisive second leg of their UEFA Champions League Round of 16 tie at Spotify Camp Nou, with the aggregate score level at 1-1 after a tense 1-1 draw at St James’ Park last week.

Frenkie de Jong of FC Barcelona celebrates scoring his team's opening goal with team mates during the Supercopa de Espana Semi Final match between Real Sociedad and FC Barcelona at Estadio Nuevo Arcangel on January 13, 2021 in Cordoba, Spain.

Kickoff is set for 6:45 p.m. CET (5:45 p.m. GMT, 1:45 p.m. ET, 10:45 a.m. PT), an earlier-than-usual slot for European midweek action. The match promises high stakes as Hansi Flick’s Barcelona seeks to leverage home advantage against Eddie Howe’s resilient Newcastle side, which punched above expectations in the first leg.

The first encounter on March 10 saw Newcastle take a late lead through Harvey Barnes in the 86th minute, only for Lamine Yamal to equalize from the penalty spot in stoppage time (90+6′). That dramatic finish kept the tie alive, with Barcelona’s young star rescuing a point in a match where the hosts dominated possession but struggled to break down Newcastle’s organized defense.

Barcelona enters as clear favorites. The Catalans boast one of Europe’s most potent attacks, led by Robert Lewandowski, Raphinha and the explosive Yamal. Flick’s side has shown attacking flair in the Champions League this season, scoring in every group-stage and knockout match while maintaining high pressing intensity. At home, Barcelona’s record remains formidable, with the Camp Nou crowd expected to create a cauldron atmosphere.

Newcastle, meanwhile, has impressed with defensive solidity and counter-attacking threat. Eddie Howe made five changes for the second leg, including Sandro Tonali’s return to midfield, signaling intent to disrupt Barcelona’s rhythm. Anthony Gordon, back from injury, leads the line alongside Harvey Barnes and Anthony Elanga, aiming to exploit any gaps in Barcelona’s high defensive line.

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Predicted lineups reflect tactical battles:

**Barcelona (4-2-3-1):** Joan García (GK); Joao Cancelo, Pau Cubarsí, Eric García, Gerard Martin; Pedri, Marc Bernal; Fermín López, Raphinha, Lamine Yamal; Robert Lewandowski.

**Newcastle United (4-3-3):** Aaron Ramsdale (GK); Kieran Trippier, Malick Thiaw, Dan Burn, Lewis Hall; Jacob Ramsey, Sandro Tonali, Joelinton; Anthony Elanga, Anthony Gordon, Harvey Barnes.

Injuries and suspensions remain minimal, though Newcastle monitors fitness for key players like Tonali after a recent concern.

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Predictions favor Barcelona progression. Analysts at Sports Mole, SportsGambler and others project a narrow home win, with common scorelines including 2-1 or 3-1 to Barcelona (aggregate 3-2 or 4-2). Betting markets list Barcelona at around -172 to win, reflecting a 63% implied probability. Many foresee both teams scoring and over 2.5 goals, given Barcelona’s attacking output and Newcastle’s direct style — the sides have combined for high-scoring games in recent European outings.

Key battles include Yamal vs. Newcastle’s full-backs, where the teenager’s pace and dribbling could prove decisive. Lewandowski’s movement against Newcastle’s center-backs, and midfield duels involving Pedri and Tonali, will shape possession and transitions.

Barcelona’s edge stems from home form and depth, with Flick emphasizing control and clinical finishing. Newcastle’s “superpower” atmosphere at St James’ Park helped them last week, but Camp Nou’s intensity and Barcelona’s quality should tilt the balance.

The winner advances to the quarterfinals, a massive boost for either club’s season. For Barcelona, progression would validate Flick’s project amid La Liga title challenges. For Newcastle, an upset would mark historic European progress.

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Where to watch live stream and TV coverage:

– **United States:** Paramount+ (exclusive English-language streaming), with options on CBS channels in select markets.

– **United Kingdom:** TNT Sports 2 (TV), with streaming on discovery+.

– **Spain:** Movistar+ and other pay-TV platforms.

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– **Canada:** DAZN.

– **Other regions:** Check UEFA.com or local broadcasters; international streams available via Paramount+ in many territories.

Fans without cable can access Paramount+ (U.S.) or equivalent services, often with free trials. Live updates and highlights will stream on UEFA’s official platforms post-match.

As kickoff nears, anticipation builds for a potential classic. Barcelona’s firepower at home makes them the side to beat, but Newcastle’s grit could force extra time or penalties if they frustrate the hosts early.

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