**Union Budget 2026 & Market Brief: February 3, 2026** **Market Pulse** Markets staged a massive recovery today, erasing Budget-day losses. **Sensex:** 83,739 (+2,072 pts / **+2.5%**) **Nifty 50:** 25,727 (+639 pts / **+2.5%**) **Top Driver:** A landmark India-US trade deal slashing reciprocal tariffs to **18%** triggered a broad rally, offsetting initial jitters over tax hikes. **Budget 2026-27 Highlights** Finance Minister Nirmala Sitharaman presented the Union Budget on February 1, 2026, anchoring the "Viksit Bharat 2047" vision. * **Fiscal Deficit:** Targeted at **4.3%** for FY27. * **Capex:** Raised to **₹12.2 lakh crore** to sustain infrastructure momentum. * **Tax Stability:** No changes in direct tax rates, a move aimed at preserving long-term investor confidence. **STT Hike & R Gandhi’s Stance** A sharp hike in Securities Transaction Tax (STT) initially spooked traders: * **Futures:** Increased to **0.05%** (from 0.02%). * **Options Premium:** Increased to **0.15%** (from 0.1%). Former RBI Deputy Governor R Gandhi has strongly backed this move. He argues the hike is a necessary prudential measure to curb excessive speculation rather than a revenue grab. According to Gandhi, this ensures the derivatives market serves its core purpose—hedging and price discovery—without destabilizing the broader ecosystem. **Outlook** While short-term traders face higher costs, the structural story remains intact. The government's focus on fiscal consolidation (4.3% target) combined with the new US trade pact has shifted sentiment back to "buy on dips." Long-term institutional flows are expected to stabilize as the market digests the new tax regime. ... [Union Budget 2026 Market Reaction](https://www.youtube.com/watch?v=_TJOzwpdGZ0) This video provides live expert analysis and immediate market reactions to the key budget announcements mentioned above. http://googleusercontent.com/youtube_content/0