Sitharaman Opens Door To LTCG Tax And STT Feedback; Sensex Surges Over 1,100 Points And HCLTech Leads The IT Rally

Finance Minister Nirmala Sitharaman said on 13 October 2026 that she was willing to hear views on long-term capital gains (LTCG) tax and securities transaction tax (STT).

Speaking at the Bloomberg New Economy Forum in New Delhi, she noted that investors in India and abroad had been discussing capital gains taxation. She also said debate over transaction taxes and the treatment of different asset classes was healthy.

The comments came as preparations for the next Union Budget had begun. Following this, the Sensex rose more than 1,100 points to an intraday high, while the Nifty gained over 350 points. The rally followed weeks of market pressure, although no available reports establish that the Finance Minister’s remarks were the sole reason for the gains.

Capital-market stocks, including the Bombay Stock Exchange (BSE), Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL), also advanced.

LTCG Tax And STT Rates

At present, LTCG on holdings held for more than 12 months is taxed at 12.5%, with an exemption for gains of up to ₹1.25 lakh per financial year.

It is also noted that the Union Budget 2026 increased:

• STT on equity futures to 0.05% from 0.02%

• Options premiums to 0.15% from 0.1%

• And exercised options to 0.15% from 0.125%

The FM said she would approach possible tax changes cautiously because Budget preparations were under way. She also maintained that India’s macroeconomic fundamentals remained sound and that fiscal discipline should not be a cause for concern.

On the currency front, she said the Reserve Bank of India (RBI) was taking significant measures, while external factors remained among the key reasons for the rupee’s depreciation.

IT Stocks Lead Gains As Inflation And Crude Prices Remain Concerns

The Nifty IT index climbed 5%, with HCLTech rising around 8% and Tata Consultancy Services (TCS) gaining about 6%. Technology-sector strength is attributed partly to recent quarterly results that helped ease concerns over earnings growth and profitability.

Despite the recovery, the Nifty IT index remained down 23% year-to-date (YTD), reflecting earlier concerns about slowing earnings growth and artificial intelligence (AI)’s potential impact on traditional software services. Recent results from TCS and HCLTech helped ease some of these concerns in the near term.

Market participation remained uneven: 14 of 16 major sectoral indices traded higher, but small-cap stocks fell 0.7%, while mid-caps rose 0.4%.

Inflation and elevated crude prices remained additional risks. Retail inflation reached 5.54% in September, and Brent crude remained above US$100 a barrel, keeping concerns over inflation and monetary conditions in focus.

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