Medium impact
Reports of a capital gains tax review add to buying, but nothing is decided
According to reports in late October citing officials, the government has consulted industry, SEBI, tax authorities and banks on whether the 12.5% long-term capital gains tax on shares makes India less attractive to investors, with options such as letting foreign investors calculate gains in dollars. The finance minister said on 13 October the government was open to views. No decision has been announced. The Nifty Capital Markets index rose 4.53% on 3 November, with MCX up 7.4%, Angel One up 7% and BSE up 5%.
The chain of consequences
- 1Foreign investors pulled about ₹3 lakh crore from Indian shares this year
- 2Government reported to be reviewing long-term capital gains tax
- 3Traders bet on possible relief, especially for foreign investors
- 4Capital-market shares such as BSE and MCX rally
Tends to gain
Stock exchanges, brokers and depositories such as BSE, MCX, Angel One and CDSL
Tends to lose
Government tax revenue if rates are cut
If it reverses
If the government rules out changes, the boost to sentiment could fade.
Other stories today
- Foreign investors buy a net ₹6,837 crore, the most in a single day since October 2025
- Brent settles at $103.60 after US strikes on Iran's Qeshm Island, as Qatar keeps talks alive
- US votes in midterm elections; 10-year bond yield rises to about 4.96%
- Consumer goods shares lead as Marico jumps about 10% after results
- Private banks rise 2%, state-run banks fall 1.3% as SBI reports results
- Power Grid falls 3%, the weakest Nifty share, as power utilities lag
- Defence shares extend rebound; BEL keeps its 15%-plus growth outlook
- Coal India reported to plan a $1 billion share sale in Mahanadi Coalfields
- Dr Reddy's rises 2% on HIV-prevention drug approval; Sun Pharma clarifies plant report
- Auto shares rise 1.7% for a second day after record October sales
- Apollo Hospitals and NHPC report September-quarter results today