India’s Budget Disappoints With Surprise Tax Hike, Investors Say

The Indian government’s budget proposal to increase taxes on equity derivatives trading without providing measures to immediately stem foreign outflows is set to pressure domestic shares in the near-term, according to analysts and fund managers.

The country’s standing among the world’s worst performing stock markets this year fueled expectations of steps to revive earnings and lure back global funds. Foreign investors have dumped more than $3 billion in local shares since the start of 2026, helping the NSE Nifty 50 Index slump 3.1% in January.

The equity benchmark extended that selloff in a special Sunday session, marking its worst budget-day ...