February 16, 2026
The Budget always brings a rollercoaster of expectations and anxieties to the stock market. Following the presentation of the Union Budget for the 2026-27 fiscal year, Dalal Street witnessed unprecedented volatility. On one hand, changes in the tax structure have caused concern among traders; on the other hand, the government’s focus on infrastructure development has opened new doors of opportunity for specific sectors.
1. Key Reasons for Market Volatility: STT and Capital Gains
The significant correction seen in the Sensex and Nifty following the Budget announcement was primarily driven by the increase in Securities Transaction Tax (STT). Specifically, the hike in tax on Futures and Options (F&O) trading led to a massive sell-off by intra-day traders. Additionally, uncertainties regarding Long Term Capital Gains (LTCG) forced investors to step back temporarily. This reaction is natural, as a degree of fear and caution is common among all stakeholders during such transitions.
2. The Budget’s 'Big Winners': Which Sectors Will Yield Profits?
Many view this temporary market dip as a "buying opportunity." According to the Budget blueprint, the following sectors are expected to remain strong in the coming days:
• Infrastructure and Railways
The government has once again allocated record funding for infrastructure development. This will have a direct positive impact on cement, steel, and construction stocks.
• Green Energy and Electric Vehicles (EV)
With a strong emphasis on renewable energy to combat climate change, companies like Tata Power or Adani Green could see long-term benefits.
• Defense Sector
Under the ‘Atmanirbhar Bharat’ initiative, a massive budget has been allocated for manufacturing defense equipment domestically, which will provide a boost to stocks like HAL and BEL.
3. What Should General Investors Do?
During these volatile times, professional analysts suggest avoiding "panic selling." It takes time for the full impact of the Budget to be reflected in the market. Therefore, the wisest strategy would be to gradually increase investments in high-quality or 'Blue-chip' shares.
We are constantly striving to provide you with the right advice and sound investment methods. Based on information gathered from various news channels and NSE web data, we will continue to bring you deeper insights and further updates.
Disclaimer: Investment in the stock market is subject to market risks. Please consult with your financial advisor before making any major investment decisions.