The BSE witnessed sharp weakness following the Union Budget announcement

With benchmark indices correcting meaningfully as investor expectations fell short. Markets reacted negatively to the absence of strong growth catalysts and the introduction of measures perceived as unfavourable for near-term market activity. The immediate sell-off reflected heightened uncertainty, with participants choosing to reduce risk rather than commit fresh capital amid policy-led ambiguity. A key overhang on sentiment was the increase in transaction-related levies, particularly in the derivatives segment, which materially raises trading costs. This move is expected to impact volumes, liquidity, and overall market participation on the BSE, especially among high-frequency and proprietary traders. Capital-market-linked stocks and index heavyweights bore the brunt of selling pressure, while broader market breadth weakened, indicating a widespread risk-off shift rather than isolated profit booking. Looking ahead, the near-term outlook for BSE-listed equities remains cautious. Higher transaction costs, lack of immediate fiscal stimulus for consumption or private capex, and concerns around earnings visibility could keep volatility elevated. Unless follow-up policy signals or macro data revive confidence, markets may remain under pressure, with investors favouring defensive positioning and selective exposure over aggressive risk-taking.