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Stock Market Daily Podcast — February 2, 2026
Today’s podcast episode was created from the following stories:
Stock Market Highlights: Sensex plunges 1,546 points, Nifty sinks below 25,000 as Budget hikes STT on derivatives
Source: Original article
India’s Union Budget sparked sharp volatility: Sensex closed down 1,547 points and Nifty fell below 25,000 as the government raised Securities Transaction Tax on futures and options. While higher STT is expected to lift trading costs and dent derivatives volumes, the Budget emphasized pro-growth spending, lifting capex by ~9% and outlining support for infrastructure, MSMEs, and biopharma. Sectorally, PSU banks and metals slid, brokers dropped on STT concerns, while select infra names rallied on capex cues.
STT bombshell hits Dalal Street: Top 10 laggards in Sunday’s budget special trading session
Source: Original article
Frontline indices slumped in the rare Sunday session after the STT hike, with the Nifty 500’s biggest losers dropping 7%–14%. Pressure was acute across commodities (MCX, Hindustan Copper, Hindustan Zinc), defence (Bharat Dynamics, GRSE), capital markets (BSE, CDSL), and brokers (Angel One), reflecting concerns over trading costs and commodity price weakness. The selloff underscored how policy changes can quickly reprice volumes, margins, and risk appetite.
Budget 2026: STT hike to squeeze brokers’ earnings
Source: Original article
With STT on equity futures rising to 0.05% and on options premiums to 0.15%, brokers reliant on derivatives face margin pressure as volumes and liquidity could decline. Shares of brokerages and exchanges fell 5%–13% on the news, with firms exposed to F&O most affected. Liquidity providers like arbitrageurs, algos, and hedgers are expected to feel the pinch first.
Govt plans to monetise real estate assets of CPSEs via dedicated REITs
Source: Original article
The Budget proposes dedicated REITs to accelerate monetisation of CPSE real estate, leveraging a structure that has gained traction in India. This could unlock value from underutilised government assets and broaden investor access to income-generating properties. It also complements ongoing efforts to deepen capital markets and recycle public capital into growth priorities.
Your arbitrage fund returns will fall by about 0.5% next year due to increased STT: Deepak Shenoy
Source: Original article
Capitalmind’s Deepak Shenoy expects arbitrage mutual fund returns to dip by roughly 0.5% due to the STT increase, given their thin-margin strategies in futures. Retail investors may see limited impact, but FPIs and arbitrage funds face higher costs on futures legs, narrowing spreads. Other experts estimate a 0.20%–0.40% annualised hit, potentially reducing arbitrage funds’ appeal as short-term parking vehicles.
Budget 2026: India to borrow ₹17.2 lakh crore in 2026-27
Source: Original article
The Centre outlined gross borrowings of ₹17.2 lakh crore and net borrowings of ₹11.7 lakh crore for FY27, with markets bracing for potential upward pressure on yields. The plan aligns with a debt-to-GDP projection of 55.6% and a fiscal deficit target of 4.3% of GDP. Traders expect issuance dynamics and RBI operations to shape rate moves as bond markets reopen.
Budget 2026: PFC, REC rise up to 6% after FM Sitharaman announces restructuring
Source: Original article
Shares of Power Finance Corp. and REC gained after the government proposed restructuring the nonbank PSU lenders and set up a high-level review committee. The move is part of the Viksit Bharat agenda and signals an effort to align public finance institutions with the next growth phase. Broader bank stocks, however, surrendered early gains amid overall market volatility.
Union Budget 2026: India raises overseas individual investment limits in equities under PIS
Source: Original article
Individual persons resident outside India can now invest up to 10% in listed equities under the Portfolio Investment Scheme, with the aggregate cap lifted to 24%. The change aims to deepen market liquidity, broaden the shareholder base, and attract patient, long-term capital from the global Indian diaspora. Analysts see the shift complementing platforms like GIFT City to streamline cross-border flows.
Biopharma Shakti: Stocks in focus after Budget 2026
Source: Original article
The Budget earmarks ₹10,000 crore over five years to build a biopharma hub, expand NIPER-led talent pipelines, streamline biosimilar approvals, and develop 1,000 clinical trial sites. Indian pharma majors are pushing deeper into biologics and biosimilars, positioning for the global shift away from small molecules. Beneficiaries could include Biocon, Sun Pharma, Dr. Reddy’s, Zydus, and others advancing biosimilar portfolios.
Union Budget 2026: Centre aims at retaining states’ tax share at 41% for 2026–31
Source: Original article
The Centre plans to maintain states’ share of the divisible tax pool at 41% for 2026–31, consistent with Finance Commission recommendations, alongside ₹1.40 lakh crore in grants for FY27. While headline devolution remains high, the effective share is tempered by cesses and surcharges outside the divisible pool. The move provides predictability for state finances and capex planning.
Fed’s Musalem says no more rate cuts needed with policy now at neutral level
Source: Original article
St. Louis Fed President Alberto Musalem signaled no urgency to cut rates further, calling policy neutral and noting above-trend growth with inflation still above target. He suggested cuts would be contingent on softer labor data or clearer disinflation. For global markets, a steady Fed reinforces higher-for-longer rate dynamics that influence risk asset valuations and EM flows.
Shoulder to shoulder with Michael Burry: A day trader details his bearish thesis on one of the Reddit crowd’s favorite stocks
Source: Original article
A retail trader outlined a bearish case on Palantir, aligning with Michael Burry’s skepticism on AI valuations and pointing to rich multiples and share dilution. While acknowledging potential from defense contracts, the thesis argues growth may not justify current pricing. The piece illustrates rising debate within retail circles about separating narratives from fundamentals in the AI trade.
