Capital market intermediaries witnessed substantial buying interest after the Finance Minister noted the government would consider foreign investor requests regarding equity tax revisions. Brokerage firm Jefferies suggested that any prospective relief on long-term capital gains could effectively draw overseas capital back into domestic equities. The optimism coincided with broader market indices advancing significantly as foreign portfolio investors reversed recent trends to become net buyers.
Key points
Government openness to reviewing capital gains tax structures served as a major catalyst…: Government openness to reviewing capital gains tax structures served as a major catalyst for the financial sector.
Anticipation of tax relief has raised expectations for the sustained return of foreign in…: Anticipation of tax relief has raised expectations for the sustained return of foreign investment into Indian equities.
Strong institutional participation reinforced a wider domestic market recovery that added…: Strong institutional participation reinforced a wider domestic market recovery that added roughly Rs 4 lakh crore to BSE market capitalisation.
Sources checked by our analysis pipeline: 1
The sharp surge in stocks pushed the Nifty Capital Markets index more than 3% higher, hitting a seven-week high of 5,380 on Tuesday. Angel One shares were the top gainer, with the shares of the company rallying nearly 8%, extending gains to 32% in 2026 so far.
Motilal Oswal Financial Services jumped nearly 6%, while CDSL, CAMS and 360 One WAM shares gained around 5% each. NAM India, Groww, KFinTech, MCX, BSE, HDFC AMC and IEX shares gained 2-3%.
Also read | Why is the market rallying today?
Here are 3 reasons why capital market stocks may be rallying today.
1. LTCG tax relief on the cards
The buzz around potential relief on the LTCG tax front continues to grow louder. The central government would "consider" the request from foreign investors to review the structure of taxes levied on equity capital gains, Finance Minister Nirmala Sitharaman said on Monday. The circumstances have changed and, therefore, the voices of concern are louder,'' she said at a media event, in reference to reports that her administration has received suggestions to review levies…
Official advance estimates indicate an ongoing economic recovery, with the city now maintaining expansion for 15 consecutive quarters. The latest growth figures substantially outperformed analyst projections, signaling stronger underlying momentum than financial markets had anticipated. This robust pace reflects continued resilience following solid output recorded throughout the earlier half of the year.
Market participants are driving upward momentum in the equity during the latest trading session. The movement reflects immediate trading activity surrounding the company as market action unfolds. Further developments and drivers remain closely monitored by industry observers.
Market participants are driving upward momentum in the equity during the latest trading session. The movement reflects immediate trading activity surrounding the company as market action unfolds. Further developments and drivers remain closely monitored by industry observers.