Editor’s Note
The recent market downturn following the STT hike in Budget 2026 has sparked concern. However, as expert analysis within this article suggests, such periods of volatility can also create strategic entry points for discerning investors.
Following the increase in Securities Transaction Tax (STT) on Futures and Options (F&O) in Budget 2026, the stock market, Nifty, and Sensex witnessed a sharp decline. Gold and silver prices also fell. According to expert Manoj Lamba, this ‘panic selling’ presents an opportunity for investors.
The primary reason for the decline in the stock market, particularly in Nifty and Sensex, is the increase in Securities Transaction Tax (STT) in the Futures and Options (F&O) segment. The government has raised STT on the futures market (F&O) from 0.02% to 0.05%. According to a SEBI report, 93% of retail investors incur losses in F&O. The government is taking this step to reduce speculation and protect small investors’ money from being wiped out.
Gold and silver prices, which had been at record highs for several months, have suddenly fallen after the budget. The drop in prices is a significant opportunity for families with weddings or other ceremonies at home.
The expert advises not to invest all money at once but to adopt a ‘Gold Investment Plan’ (GIP) or ‘Silver Investment Plan’ (SIP) on the lines of a Systematic Investment Plan (SIP) and invest a small amount every month.
Experts believe this decline is temporary. This panic may subside in the next 3-5 days, and the market could recover. Because the market is currently down, it could be the right time for long-term investors to buy.
(Disclaimer: Investment in the stock market is subject to risks. It is essential to consult market experts before making any investment in gold, silver, gold-silver ETFs, or the stock market.)