Premium

Budget must ensure stability in capital gains tax: stock market expert

Analysts suggest that this budget will mark a structural shift—moving away from broad-based consumption triggers toward a production-led "Build India" agenda.

2 min readPuneJan 31, 2026 09:54 PM IST

Union Budget 2026, Finance Minister Nirmala Sitharaman, Indian stock market,

The 2026 Union Budget arrives at a critical juncture. While India remains a global growth outlier, the domestic market is currently navigating a period of "selective optimism." (File photo)

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026 on Sunday, February 1, the Indian stock market is bracing for a high-stakes session. This marks only the second time in history that the markets will remain open on a Sunday to process the fiscal roadmap, said market experts.

The 2026 Union Budget arrives at a critical juncture. While India remains a global growth outlier, the domestic market is currently navigating a period of “selective optimism.” Analysts suggest that this budget will mark a structural shift—moving away from broad-based consumption triggers toward a production-led “Build India” agenda.

“To attract FIIs, the Budget must ensure fiscal discipline, tax stability, and policy continuity. Currency stability and strong corporate earnings growth will be key drivers. Global investors seek predictability — and India has the opportunity to position itself as the most stable emerging market destination,” said Gaurav Bora, stock market expert from Pimpri-Chinchwad.

Bora said, “FIIs prefer clarity in taxation policies. Sudden changes in capital gains tax, dividend taxation, or surcharge structures create uncertainty. The government can; ensure stability in capital gains tax framework; Avoid retrospective taxation; simplify compliance for foreign portfolio investors.”

Policy continuity encourages long-term capital rather than short-term speculative flows and further reforms to strengthen market depth and transparency can attract global funds, he said.

Bora said currency stability is a major factor for FIIs. “Even if equity returns are attractive, sharp rupee depreciation can erode gains. Policies that improve current account balance, boost exports, and manage inflation help stabilize the rupee and make India more attractive.”

Click here to join Express Pune WhatsApp channel and get a curated list of our stories

Tags:
Budget

Loading Taboola...