With just a few days remaining for the Union Budget 2026 presentation, the Indian stock market has entered a phase of high volatility. In a sharp downturn during early trade today, the BSE benchmark Sensex tanked by over 600 points, reflecting nervousness among investors and institutional traders.

Financial analysts point to several triggers that have led to this "pre-budget jitters" scenario:

 There is widespread speculation regarding potential changes to the Long-Term Capital Gains (LTCG) tax and revisions in income tax slabs. Investors are cautious about any fiscal tweaks that might impact net returns.
 Following a recent rally, many investors are choosing to "cash out" and lock in profits before the Finance Minister’s speech on February 1st.
 Foreign Institutional Investors (FIIs) have maintained a selling bias, offloading shares in heavy-weight sectors like Banking and IT, which has further dragged down the indices.
Ongoing geopolitical tensions and economic data from global markets have contributed to a risk-off sentiment domestically.