Nifty at 24,000? LTCG tax cut hopes, peak FII selling, cheaper valuations: Stock market outlook
Business Today 1 hr ago·3 Nov 2026, 9:23 am
The Indian stock market is currently navigating a complex mix of positive and negative factors as it attempts to reclaim the 24,000 level on the Nifty index. On the positive side, investors are hopeful that the government will reduce the long-term capital gains tax on equities. Additionally, foreign institutional investors (FIIs), who have been selling aggressively recently, appear to be pausing their outflows. This shift in sentiment is supported by the fact that Indian stocks have become significantly cheaper compared to their global peers, making them more attractive to value-focused buyers.
For retail investors, this environment presents a classic case of 'buying on dips.' The combination of attractive valuations and the prospect of reduced tax liabilities suggests that the current market weakness might be a buying opportunity rather than a signal to sell. However, the market remains sensitive to global cues, particularly from the US Federal Reserve, which continues to influence liquidity and investor risk appetite.
Moving forward, the key watchlist for investors will be the upcoming earnings reports from major companies and the government's decision on the LTCG tax. A decisive move on the tax front could provide the necessary momentum to push the indices higher, while sustained FII inflows will be crucial for maintaining this upward trajectory.
Excerpt from Business Today
Nomura said the demand environment has held up well, reflected in strong revenue growth across segments, with some compression in Ebitda margin on higher commodity prices. A possible long-term capital gains tax (LTCG) cut for foreign institutional investors, the fall in global yields and expectations of the rupee…Read the original at Business Today
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