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Indian stock markets were slightly higher on Monday. The Sensex and Nifty recovered after falling in the special weekend trading sessions, as investors reacted to the Union Budget.
At the time of writing, the BSE Sensex was trading 536 points higher at 81,259. Meanwhile, the NSE Nifty was 133 points higher at 24,958.
Amid the positive market, Groww emerged as one of the top losers of the day.
What caused this sudden drop?
Groww's parent company, Billionbrains Garage Ventures, has come under pressure following the Union Budget 2026.
The company's share price fell as much as 5% on Monday.
The main reason behind the fall is the government's decision to increase the Securities Transaction Tax (STT) on futures and options (F&O) trading.
As announced in the Budget, STT on futures has been raised from 0.02% to 0.05%, while STT on options has been increased from 0.10% to 0.15%. This move makes derivatives trading more expensive for traders and investors. There is a belief that this would reduce volumes in the F&O segment and could impact revenues of Groww.
This can be one of the reasons why the share price is declining.
Moving forward, Groww, has introduced commodities trading for certain users. Future revenue growth may be strengthened by the company's anticipated expansion of its margin trading facility (MTF) lending product and its new verticals.
Groww has invested a lot in technology to support its growth. The focus is on improving user experience with better charts and trading tools.
With the launch of backup platforms like Groww Lite, the company has created a fail-safe system. This system lets users manage their trades during important market hours, even if there are outages or technical issues.
One important point to note is that Groww operates in a highly regulated space overseen by the capital market regulator and the RBI.
As a result, any change in rules or regulations can have a direct impact on its business model, pricing strategy, and overall profitability.
That said, with its steady profitability, innovative offerings, and expanding financial ecosystems, Groww is well-positioned to lead India's next phase of fintech growth.
Groww shares have fallen 4.2% over the last five sessions.
The stock touched its 52-week high of Rs 193.91 on 18 November 2025 and its 52-week low of Rs 112.02 on 12 November 2025.
Groww is an online investment platform headquartered in Bengaluru, India. Founded in 2016, it began as a direct mutual fund distribution platform, quickly gaining popularity among investors in India.
Over time, Groww expanded its offerings to include stocks, digital gold, ETFs, intraday trading, IPOs, and various financial services tailored for retail investors.
Groww offers a range of tools and services such as mutual fund tracking, SIP calculators, brokerage calculators, and transparent pricing to help investors make informed decisions.
All in all, Groww presents a strong growth story to investors in India's booming retail brokerage and wealth tech space.
To know what's moving the Indian stock markets today, check out the most recent share market updates here.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...
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