Indian equities jump 1.6% as FM's STT remarks spark hopes of tax review

Mumbai: Indian equities surged 1.6% on Tuesday, their biggest single-day gain in more than two months, as finance minister Nirmala Sitharaman's remarks on stock market transaction taxes raised hopes of a possible review, triggering short-covering. A rally in IT stocks amid a selloff in AI-related shares in South Korea and Taiwan added to the gains. The Nifty 50 rose 1.6% to close at 22,722, while the Sensex advanced 1.54% to 73,034. The rally came amid continued concerns over elevated crude oil prices, foreign investor selling and the conflict in West Asia.

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Sitharaman acknowledged the debate over the securities transaction tax (STT) but stopped short of indicating any proposed change. "It's healthy to have this debate, and I will be keenly hearing them," she said. India's taxes on stock market transactions have drawn criticism for being excessive and higher than those in many other markets.


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"The rally was (led by) expiry-related short covering," said Sunny Agrawal, head of fundamental research, SBI Capital Securities.