Samir Arora calls for Capital Gains tax cut to stem FII outflows

PMS fund manager Samir Arora recently weighed in on the issue of the consistent foreign institutional investors (FIIs) selling pressure in Indian equities via a tweet, suggesting to the government of India, to cut the capital gains tax back to 10% to boost the market rally.

“GOI should cut capital gains tax back to 10% so the market rallies a lot and to show these FII losers how wrong they have been in selling Indian stocks,” said Samir Arora, Founder of Helios Capital, in his post on the social media platform X.



“There is one way to show them how wrong they are,” stated Arora in the tweet.

This tweet from Arora comes after the Indian markets have witnessed massive offloading of Indian equities for the past several months, creating a challenging environment for the domestic market.

Arora seems to believe this move would trigger a significant market rally, effectively demonstrating to FIIs that their selling strategy was ill-timed.

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Arora’s suggestion highlights the growing concern surrounding the sustained FII outflows and the potential need for measures to boost market sentiment and attract investment.

The FIIs have maintained a consistent selling trend in the Indian equity markets throughout January, being net sellers on almost every trading day this month alone, with total equity sales in the cash market reaching Rs 66,602 crore as of January 24th.

Market analysts believe that the selling trend is likely to persist as long as two key global financial indicators remain elevated.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)