Cut STT and capital gains tax to boost stock market sentiment, says Gurmeet Chadha
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Gurmeet Chadha said the government should cut STT and capital gains tax to boost stock market sentiment.
- ✓While Nifty 500 revenue grew 20% in Q1FY27, FPI selling hurts equities.
- ✓Chadha said, "Do reforms, prepare the markets for it, and do it in a way where it is well absorbed."
Story at a Glance
- Category
- MARKET
- Reported By
- CNBC TV18
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The Indian stock market is currently disconnected from strong real-economy indicators, and policymakers should focus on lowering taxes and phasing in reforms to improve sentiment, according to Gurmeet Chadha, Managing Partner and Chief Investment Officer at Complete Circle.
Plain hard data highlights this economic resilience. Nifty 500 revenue grew more than 20% in the April-June quarter of 2026 (Q1FY27), with profit after tax (PAT) rising 21%. September auto sales hit a record 25.4 lakh units, while retail commercial vehicle (CV) sales reached the one-lakh mark for the first time, signaling robust industrial activity and capital expenditure.
Despite these numbers, equities face supply pressure from foreign portfolio investor (FPI) selling and market inefficiencies. A large part of the derivative trade relies on arbitrage, which is rapidly disappearing. Buying the Nifty today and selling in the future currently results in a loss of ₹15 to ₹16, a shift that primarily benefits high-frequency traders.
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CNBC TV18
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