Policy · Financial Services

Groww shares fall after budget tax hike on derivatives

By Startup Enthusiast · 1 February 2026

What they do

Groww is an online platform for stocks, mutual funds, and derivatives trading in India

Shares dropped nearly 7% as the Finance Minister proposed higher taxes on futures and options

The company recently listed in November 2025 and reported a 28% profit decline last quarter

Groww shares plunged nearly 7% following the Finance Minister's budget speech.
The stock slumped to an intraday low of INR 157 on the BSE.
Market capitalization dropped below INR 1 Lakh Cr during the sell-off.
This marks the second straight session of losses for the listed company.
Investors reacted negatively to proposed changes in securities transaction tax rates.
The decline broke a positive momentum gained over the previous eight sessions.
Shares recovered slightly to close at INR 159.95, marking a 4.8% decline.
Rival broker Angel One also saw significant volatility during the same period.

Finance Minister Nirmala Sitharaman proposed hiking the Securities Transaction Tax (STT) on Futures and Options (F&O).
STT on Futures would rise from 0.02% to 0.05%.
Options premium and exercise taxes would increase to 0.15% from current rates.
These tax changes are applicable for trades starting April 1, 2026.
Higher taxes on derivatives trading directly impact brokerages offering these services.

Groww operates as an online brokerage platform for Indian investors.
It offers Demat accounts, trading, and direct mutual fund investments.
Users can invest in stocks, ETFs, IPOs, and commodities through the app.
The platform features intraday monitoring, stock screeners, and API trading tools.
Direct Mutual Funds are available with zero charges via lump sum or SIPs.
Groww claims to be trusted by over 130 million Indians.
The company does not charge account opening fees for new users.
Services include MTFs (margin trading facility) and pledge facilities.
Groww launched its public market debut in November 2025.

Citi (analyst) — Initiated coverage with a target price of INR 195.
Jefferies (analyst) — Reiterated buy rating and revised target price upwards to INR 195.