Mumbai, Feb 2, 2026, 02:19 IST — The market has closed.
- Reliance Industries closed the Sunday budget session roughly 3.5% lower, at 1,347 rupees.
- India’s budget increased transaction taxes on derivatives, sparking concerns about market liquidity.
- Attention now turns to Monday’s reopen and the RBI policy meeting set to conclude on Feb. 6.
Shares of Reliance Industries Ltd slipped 3.5%, ending at 1,347 rupees on the NSE Sunday. The stock fluctuated between 1,335 and 1,411 rupees during a special session tied to the federal budget. (Yahoo Finance)
Reliance’s stock shift carries weight, given its status as a heavyweight in Indian benchmarks and a key gauge of local risk appetite. Cash remains jittery, and traders are watching closely to see if Sunday’s budget nerves carry over into the first full trading day of the week.
Indian shares dropped on budget day after the government proposed hiking the securities transaction tax (STT) on derivatives like futures and options, Reuters reported. The Nifty 50 slid 1.96%, while the Sensex dropped 1.88%, marking their worst budget-day showings in six years. Trideep Bhattacharya of Edelweiss Asset Management said the budget “stopped short of the firepower” needed to boost markets. (Reuters)
According to Reuters, the budget suggests raising the Securities Transaction Tax (STT) on futures from 0.02% to 0.05% and on options from 0.1% to 0.15%. It also plans to tax share buybacks—where a company repurchases its own shares—as capital gains at slab rates. Raj Gaikar, an analyst at SAMCO Securities, warned that higher trading costs could “reduce trading volumes.” Meanwhile, Kotak Securities CEO Shripal Shah interpreted the move as more about “volume moderation” than boosting revenue. (Reuters)
India introduced a fresh, more favorable tax break for digital infrastructure. Foreign companies running data centres in the country to deliver cloud services worldwide will enjoy a tax holiday through 2047. Vaibhav Gupta, partner at Dhruva Advisors, called the move “clarity.” Reuters highlighted local giants like Reliance and Adani ramping up investment as Google readies a $15 billion data-centre project in India. (Reuters)
Reliance entered the budget session under pressure. Its shares dropped 11.1% in January, marking the steepest monthly decline in around six years, Reuters reported. The slide followed a December-quarter earnings miss, driven by sluggish retail growth. Sat Duhra of Janus Henderson Investors remarked that “earnings have been anaemic,” adding that foreign investors aren’t seeing much value at current price levels. (Reuters)
Energy adds another variable. Reliance, which runs the world’s biggest refining hub, plans to purchase up to 150,000 barrels per day of Russian oil starting February, resuming after a one-month break, a company official told Reuters. (Reuters)
The budget’s higher trading taxes could sap liquidity — the ease of buying and selling — just as foreign inflows remain fragile. A Reuters poll showed over 80% of economists expect the Reserve Bank of India to hold the repo rate steady at 5.25% after its Feb. 4-6 meeting. ICICI Securities Primary Dealership economist Abhishek Upadhyay said the RBI is in a “very good place” to maintain rates, even as policymakers weigh growth concerns against a pressured rupee. (Reuters)
Reliance faces its next test when markets reopen Monday, as traders weigh whether budget jitters ease or spark another wave of selling. The RBI’s decision on Feb. 6 follows as the next major event on the calendar.
