Business · Markets · 2 hrs ago
Indian stocks rise after finance minister says she is open to LTCG tax debate
India’s finance minister said she was open to hearing debate on long-term capital gains tax at an event on Tuesday, but did not say whether the tax would change.
The tax applies to profits from investments held over the long term, and foreign investors have called for changes to it and securities transaction tax.
The Sensex rose 1.5% and the Nifty gained 1.6% as investors responded to the possibility of tax cuts.
Foreign portfolio investors have sold a little over 3 lakh crore rupees in Indian stocks so far this year, according to the figures cited.
The debate comes as foreign funds pull money from Indian shares, while the Sensex has fallen about 13% since September 2024.
The government is preparing its Union Budget for February, but Sitharaman gave no details of any planned tax changes.
Indian stocks rose after Finance Minister Nirmala Sitharaman said she was keen to hear debate about taxes on stock investments.
She did not say whether the government would change long-term capital gains tax or securities transaction tax, citing preparations for the Union Budget in February.
The Sensex closed up 1.5%, or 1,109 points, at 73,034, while the Nifty gained 1.6%, or 359 points, to 22,722.
Her remarks raised investor hopes of tax cuts, which have been sought by foreign funds.
Sitharaman also said the Reserve Bank of India was seeking to limit rupee volatility, not fix the currency’s level.
- Who
- Finance Minister Nirmala Sitharaman and Indian stock market investors.
- What
- Stocks rose after Sitharaman said she was keen to hear debate about LTCG and securities transaction tax. She gave no specifics on possible changes.
- When
- Tuesday, October 13, 2026.
- Where
- India; Sitharaman spoke at the Bloomberg New Economy Forum.
- Why
- Her comments raised hopes among investors that taxes on stock investments could be reduced.
This story does not have two clearly opposing sides.
Sitharaman said she was keen to hear debate about stock investment taxes but declined to say whether she would consider changes.
Indian stocks rose, with the Sensex closing up 1.5% and the Nifty up 1.6%.
- Sensex close
- 73,034, up 1,109 points or 1.5%
- Nifty close
- 22,722, up 359 points or 1.6%
- Finance minister
- Nirmala Sitharaman
- Budget timing
- Union Budget due in February
- Tax issues discussed
- Long-term capital gains tax and securities transaction tax
2 sources
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What people are saying
It's healthy to have this debate, and I will be keenly hearing them
Fiscal discipline is not going to be a matter which should worry investors
A (zero) tax rate on LTCG, linked to a relatively longer holding period, could reward patient capital, encourage investors to remain invested in India and strengthen India's relative capital market attractiveness.