Impact of Budget 2026 on the Share Market: Major Gainers and Losers 

Union Budget 2026, announced by Finance Minister Nirmala Sitharaman, made a very noticeable impact on the Indian stock market, leading to volatility in all sectors and causing not only sharp declines in the stock market but also targeted booms in certain segments.  

The standard indexes went up and down as purchasers assimilated financial actions and tax reductions. 

Market Reaction – Initial Downturn 

The main indices in India recorded serious declines at the beginning of trading on Budget Day. There was an immediate market panic as the BSE Sensex fell by over 1,100 points in initial trades, and the Nifty 50 dropped below the 25,000 mark. There were also sharp declines in precious metals like gold and silver. 

Analysts pointed the first sell-off to budget plans that increased costs of trading, such as in improved securities transaction tax (STT) on derivatives, and the lack of strong attractiveness to attract inflows of foreign capital. Some of the targeted segments included financial stocks, PSU banks, and defence shares. 

Budget Provisions and Market Volatility 

Several fiscal measures directly influenced stock market behaviour: 

• An increase in STT on equity derivatives resulted in lower volumes of trading and lower short-term trading.
• The risk-off investments were contributed to by the lack of decisive foreign institutional investment incentives.
• Infrastructure expenditure and industry conviction gave certain assurance of longer-term structure improvement. 

Key Gainers: Sectors and Stocks 

Despite the volatility initially, some sectors and companies performed better as the markets recoiled after hitting lows: 

• The Pharmaceuticals and Healthcare stocks were witnessing good gains because investors expected their demand to pick up due to medical tourism and healthcare reforms. Max Healthcare and Apollo Hospitals were up to ~4%. 

• The Information Technology and Consumer Durables sectors were also resilient, as stocks such as TCS, Wipro, and Sun Pharma recorded an upside movement relative to the general selling in other areas. 

Major Losers: Selling Pressure Across Key Names 

Several heavyweight stocks and sectors suffered notable declines: 

• Metals and Capital Goods turned out to be one of the worst performers, and firms like Hindalco Industries and Bharat Electronics were registering losses in the single digits intra-day.
• Banking and Financial Services came under pressure as PSU bank stocks underperformed because of the scarce policy support.
• Other blue-chip names, such as large consumer stocks, also reversed a lot during the session. 

Key Market Trends Post-Budget 

The broader indices underperformed as investor caution persisted, with defensive and quality-growth sectors seeing relative strength, while riskier assets lagged behind. 

Short-term volatility was noticeable, yet analysts believe that structural measures in Budget 2026, such as elevated infrastructure spending and targeted industry stimulus, could support a sustained recovery once financial certainty feeds into corporate earnings growth.  

In the immediate term, investor confidence remains closely linked to both corporate performance and global market movements. 

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