Rs 6 lakh crore worth FII outflows since 2024 capital gains tax hike batter Dalal Street. Is a reversal on the cards?
Economic Times 2 hrs ago·14 Oct 2026, 10:25 am
Foreign institutional investors (FIIs) have sold over Rs 6 lakh crore of Indian equities since the government increased the long-term capital gains tax in 2024. This massive selling pressure has weighed heavily on the broader market, or Dalal Street, contributing to recent volatility. The outflows have been driven by the higher tax rate, which reduces the net returns for foreign investors holding Indian stocks for the long term.
The situation has recently shown signs of stabilization following comments by Finance Minister Nirmala Sitharaman regarding the long-term capital gains tax and securities transaction tax. These remarks have sparked hope that the government may consider a tax revision to make the market more attractive. However, the market remains cautious, as investors wait to see if any concrete policy changes will actually materialize to reverse the trend.
Key takeaways
- 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 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.
