Indian markets surged Tuesday as investors seized on Finance Minister Nirmala Sitharaman's noncommittal remark about reviewing the securities transaction tax (STT). The NSE Nifty 50 jumped 1.6%, its best day in months, while the rupee and bonds also rallied. Traders hope a potential STT cut could reduce trading costs and lure back foreign investors, who have pulled $32 billion from Indian equities this year. The government collects about $8 billion annually from STT, making any cut a revenue trade-off.
At the Bloomberg New Economy Forum, Blackstone President Jon Gray called India the world's most liquid market outside the US and the easiest place for IPOs. Jio Platforms reportedly attracted over $20 billion in bids for what could be India's largest-ever IPO, supporting Gray's view. Meanwhile, ICICI Securities remains bullish on stock exchanges despite Q2 trading declines, citing historical resilience to regulatory changes. 360 One forecasts strong demand for power-grid equipment as renewable expansion drives transmission needs.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing