Indian stock markets on Tuesday saw a sharp rebound after a streak of losses, backed by a strong rupee, a rebound in IT, financial and consumer goods stocks, and remarks by Union Finance Minister Nirmala Sitharaman over capital gains tax.
The rupee has been on an upward streak following the Reserve Bank of India’s (RBI) steps aimed at mitigating spot dollar demand and curbing excessive positioning in the foreign exchange market. The rupee strengthened for the third straight session on Tuesday and appreciated 40 paise to close at 95.38 (provisional) against the US dollar.
The 30-share BSE Sensex jumped 1,109.10 points, or 1.54 per cent, to settle at 73,033.78. NSE Nifty also rose 1.6 per cent, or 358.6 points, to close at 22,721.95.
Finance Minister Nirmala Sitharaman on Tuesday said that there is a lot of ongoing debate on long-term capital gains (LTCG) tax and STT. HUL, Titan, Bajaj Finserv, SBI, HDFC Bank, M&M and ICICI Bank were the other biggest gainers of the day. This gave investors hope about possible relaxations on capital gains taxes, which had been revised during the Union Budget in 2025. The International Monetary Fund (IMF) on Tuesday pegged India as the fastest-growing major economy with a growth rate of 7 per cent, improving investor mood despite retail inflation shooting up the previous day.
She also stated that it is healthy to have this debate and she will be keenly “hearing them”. She said LTCG tax, STT and the taxation of different asset classes remained important subjects of discussion among investors.
