$64 billion out, $5 billion in? Why LTCG tax cut may not be enough to bring FIIs back
Economic Times 1 hr ago·3 Nov 2026, 4:27 am
Foreign investors have sold over $64 billion of Indian stocks recently, prompting the government to consider cutting the long-term capital gains tax. However, this move may not be enough to reverse the trend. JM Financial analysts estimate that a tax cut could bring in only $3 to $5 billion in fresh funds, which is a fraction of the money that has already left the market.
This small potential inflow may not be enough to offset the ongoing exodus, especially as investors worry about rising oil prices and global economic uncertainty. The current tax structure treats dollar and rupee gains differently, which can impact foreign investor returns. Investors should watch for any official announcements on tax changes and monitor whether the government takes additional steps to stabilize the market.
Excerpt from Economic Times
A reassessment of long-term capital gains tax is underway as foreign investors continue their significant selloff from Indian equities. Analysts at JM Financial project that tax relief may yield only $3–5 billion in fresh inflows. This minimal increase may not be sufficient to reverse the current trend of investor…Read the original at Economic Times
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Key takeaways
- Concerns JM Financial (JMFINANCIL).
- Category: Corporate Action.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development for JM Financial and could move the stock. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
