Post the Budget announcement, equity markets on the BSE saw heightened volatility, leading to a cautious stance among investors trading through IIFL

The policy narrative lacked strong immediate growth drivers, triggering a reassessment of market positioning. As a result, participants leaned towards trimming exposure, reflecting unease over policy clarity and near-term return potential. Paragraph 2: One of the major pressure points was the rise in transaction-linked costs, especially within the derivatives segment. Increased trading expenses are expected to weigh on market activity, potentially reducing volumes and participation across platforms such as IIFL that service a large base of active traders. Selling was broad-based, cutting across heavyweight stocks and capital-market-sensitive names, underscoring a decisive shift towards risk aversion rather than routine correction. Paragraph 3: Going forward, the short-term outlook for BSE-listed equities accessed via IIFL remains restrained. Elevated cost structures, absence of strong fiscal thrust to spur demand, and uncertainty around earnings growth could keep sentiment fragile. Until supportive policy signals or macroeconomic improvements emerge, investors are likely to remain selective, prioritising stability and downside protection over aggressive exposure.