{"id":8106,"date":"2026-10-13T12:18:18","date_gmt":"2026-10-13T12:18:18","guid":{"rendered":"https:\/\/financeintellect.com\/home-page\/home\/?p=8106"},"modified":"2026-10-13T12:19:09","modified_gmt":"2026-10-13T12:19:09","slug":"capital-gains-tax-cut-talks-send-indian-stocks-to-their-best-day-in-weeks","status":"publish","type":"post","link":"https:\/\/financeintellect.com\/home-page\/home\/capital-gains-tax-cut-talks-send-indian-stocks-to-their-best-day-in-weeks\/","title":{"rendered":"Capital Gains Tax Cut Talks Send Indian Stocks to Their Best Day in Weeks"},"content":{"rendered":"

The Sensex added more than 1,100 points after the finance minister signalled openness to a debate on securities taxes, while a strong HCLTech result lifted IT shares 5%.<\/em> Foreign selling and oil prices still cloud the rally.<\/em><\/strong><\/p>\n

Indian stocks staged a sharp late-session rebound on Tuesday, and the trigger came from a policy signal, not company earnings.<\/p>\n

The BSE Sensex closed 1,109 points, or 1.54%, higher at 73,033.78. The NSE Nifty 50 rose 358.60 points, or 1.60%, to 22,721.95. The gains came a day after both indices fell about 0.7%, and they erased that loss and more.<\/p>\n

Markets opened flat but inched up immediately from the start.<\/p>\n

But the bigger boost came around 2:50 pm. Speaking at the Bloomberg New Economy Forum, Finance Minister Nirmala Sitharaman said the government would likely hear out market participants in India and abroad on how securities are taxed.<\/p>\n

She added that healthy debate on the subject should be encouraged. Preparations for the 2027 Budget have only just begun, she said, so it was too early to say what the government would or would not consider.<\/p>\n

That was enough for traders. Long-term capital gains tax and the securities transaction tax have been persistent complaints from investors, especially foreign funds, which have pulled more than \u20b93 lakh crore from Indian equities this year.<\/p>\n

Any easing would lower the cost of owning and trading Indian shares at a time when the market badly needs to win back overseas money.<\/p>\n

No proposal has been announced as yet, and the government has given no sign of what a change might look like or when. Similar hopes before past budgets have often faded. But the comments shifted sentiment on a day when the market had little else to cheer.<\/p>\n

IT leads the charge<\/strong><\/p>\n

Technology shares delivered the second boost. The Nifty IT index climbed 5.22%, the best-performing sector by a wide margin. HCL Technologies Ltd. rose about 5% after reporting a 21.2% jump in net profit to \u20b95,132 crore for the September quarter, from \u20b94,235 crore a year earlier.<\/p>\n

HCLTech also raised the lower end of its full-year revenue forecast. It now expects growth of 2.5% to 4% in constant currency, narrowed from 1% to 4%, and kept its operating margin outlook at 17.5% to 18.5%. Management warned that wage increases from October will cut margins by about 80 basis points in the December quarter and 60 basis points in the March quarter.<\/p>\n

The board declared an interim dividend of \u20b912 a share, with 16 October as the record date. Brokerages were divided on whether the rally can continue.<\/p>\n

Coming days after TCS beat profit estimates, HCLTech\u2019s numbers strengthened the view that the worst of the IT sell-off may be over. Both companies showed that while revenue growth remains slow, profits and AI-related business are holding up better than investors had feared.<\/p>\n

Broader market stock moves<\/strong><\/p>\n

The rally was uneven beyond the large caps. The Nifty Midcap 100 rose 1.06%, but the Nifty Smallcap 100 gained only 0.11%. Realty and consumer durables were among the other gainers, while pharmaceuticals was the weakest sector.<\/p>\n

Cable makers came under pressure. Polycab India, KEI Industries and R R Kabel fell as much as 5%, extending a slide that has taken them about 24% below highs reached last month, as investors worried about rising competition and promotional spending.<\/p>\n

Digital payments stocks swung during the day. Paytm operator One 97 Communications, MobiKwik and Pine Labs recovered early losses after the National Payments Corporation of India postponed the introduction of merchant charges on UPI transactions.<\/p>\n

The macro backdrop<\/strong><\/p>\n

The International Monetary Fund raised its forecast for India\u2019s growth in the year to March 2027 to 7%, from 6.4%. And the rupee opened 62 paise stronger at 95.16 to the dollar, a significant recovery from its slide toward 97 last week.<\/p>\n

Foreign investors still view India with pessimism. Foreign investors have sold \u20b944,166 crore of Indian shares so far in October. Oil remains the biggest worry. Brent crude is said to rise toward $120 a barrel in the near term as tensions in West Asia persist, which would hurt India\u2019s import bill and inflation outlook.<\/p>\n

Results watch<\/strong><\/p>\n

However, the results beat has been encouraging to say the least. Infosys reports on 23 October, HDFC Bank on 17 October, and Jio Platforms\u2019 record IPO is expected to open on 21 October.<\/p>\n

Markets will be closed on 20 October for Dussehra. Tuesday\u2019s rally showed how quickly sentiment can turn on a policy hint. Turning that into a lasting recovery will need foreign money to return, and that depends on oil, the rupee and whether the tax talk becomes action.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Sensex added more than 1,100 points after the finance minister signalled openness to a debate on securities taxes, while a strong HCLTech result lifted IT shares 5%. Foreign selling and oil prices still cloud the rally. Indian stocks staged a sharp late-session rebound on Tuesday, and the trigger came from a policy signal, not […]<\/p>\n","protected":false},"author":1,"featured_media":7490,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[4481,4857],"class_list":["post-8106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-and-politics","tag-markets","tag-nifty-gains"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t