Cut STT and capital gains tax to boost stock market sentiment, says Gurmeet Chadha
CNBC-TV18 1 hr ago·9 Oct 2026, 9:33 am
Renowned market analyst Gurmeet Chadha has suggested a significant policy shift to revitalize the Indian stock market. He advocates for a reduction in Securities Transaction Tax (STT) and capital gains tax. According to Chadha, these measures, combined with gradual regulatory changes, could alleviate the current selling pressure and improve overall market sentiment.
For investors, this proposal highlights the critical role taxation plays in market liquidity and investor confidence. Lower transaction costs typically encourage higher trading volumes, while reduced capital gains taxes can make holding investments more attractive. If implemented, such changes might encourage retail participation and stabilize volatile markets.
Investors should watch for official government responses to these suggestions. While the proposal is currently at the discussion stage, it reflects growing investor expectations for a more investor-friendly tax regime. Market participants will be closely monitoring any policy announcements that could influence future trading behavior and market dynamics.
Excerpt from CNBC-TV18
Published On Oct 9, 2026 | 15:03 IST Last Updated On Oct 9, 2026 | 15:03 IST Complete Circle's Gurmeet Chadha highlights a disconnect between India's economy and stock markets due to FPI selling. He urges the government to cut taxes like STT and LTCG, rationalize payouts, and phase in reforms to revive market…Read the original at CNBC-TV18
Key takeaways
- Category: Corporate Action.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development and could move the stock. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
