Indian Markets Rebound on Disappointment Over Tax Proposal

retroactive_airdrop · 2026-02-18T11:19:57+00:00

The Indian stock market rebounded on Monday after a significant selloff triggered by a budget proposal to increase taxes on equity derivatives. Key indices like BSE Sensex and NSE Nifty rose, bolstered by easing geopolitical tensions and varied performances from blue-chip stocks. Investors showed renewed interest despite initial disappointment over tax changes impacting certain companies.

retroactive_airdrop

2026-02-18 11:19:57

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The Indian stock market started Monday on a positive footing, bouncing back from a sharp decline during Sunday’s special weekend trading session. Market sentiment had soured over the government’s budget announcement proposing increased taxes on equity derivatives trading, triggering significant selloffs. Despite this disappointment, investors returned Monday with renewed buying interest, suggesting a stabilization of sentiment.

Budget Proposal Stirs Market Disappointment, Triggering Weekend Selloff

The weekend session saw considerable selling pressure as market participants digested the government’s latest budget proposal regarding equity derivatives taxation. This disappointment cascaded through the markets, prompting investors to trim positions ahead of the new week. The proposal to increase levies on derivatives trading struck a chord with traders and institutions who worried about the impact on market liquidity and trading volumes. However, as markets opened Monday, fresh money appeared to enter, indicating that the initial shock was beginning to wear off among buyers.

Key Index Movements Amid Easing Geopolitical Tensions

The BSE Sensex climbed 450 points, or 0.6 percent, to reach 81,175 in early Monday trading, reversing nearly 2 percent of the previous session’s losses. The broader NSE Nifty index edged up 47 points, or 0.2 percent, settling at 24,872. Global crude oil prices fell more than 3 percent on easing tensions between the United States and Iran, providing some relief to the energy-dependent Indian economy and supporting overall market sentiment.

Blue-chip Stocks Post Mixed Performance

Major index constituents delivered divergent results Monday. Adani Green Energy surged 4 percent following a fresh clarification from the company regarding a civil case filed by the U.S. Securities and Exchange Commission. Eternal, Larsen & Toubro, Asian Paints, and Adani Ports all posted gains of approximately 3 percent each, benefiting from the broader market recovery momentum.

On the downside, Hyundai Motor declined more than 2 percent, Bajaj Housing Finance dropped 1 percent, and RailTel Corp gave up 1.3 percent ahead of their upcoming earnings announcements. Tata Chemicals lost 2.5 percent on profit-taking activity.

Tax and Policy Changes Weigh on Select Names

ITC slipped 1.2 percent following a fresh hike in excise duty on cigarettes announced in the Union Budget 2026-27. Quess Corp fell more than 2 percent after receiving a final assessment order from the Income Tax Department, which resulted in a tax demand of 160 crore rupees. These policy-driven moves underscore how budget announcements directly influence individual stock performance and investor positioning, reflecting the market’s disappointment with certain fiscal measures while gradually stabilizing across the broader index.

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