New Delhi, Feb. 1 -- Stocks of capital-market-related companies such as exchanges and discount brokers have been hit hardest by the steep hike in securities transaction tax (STT). Listed companies aren't the only ones that will bear the brunt - the valuation of NSE's upcoming initial public offering (IPO) will also be affected as it is the dominant exchange in equity derivatives trading.

Discount brokers primarily provide the execution platform for placing trades, generally at a flat fee per order. This fee is currently Rs.20 per order at leading discount brokers such as Angel One Ltd, Billionbrains Garage Ventures Ltd (Groww) and Zerodha. They depend more on brokerage income from futures and options (F&O) than full-service brokerages su...