ഓഹരി വിപണിയിലെ ഉണർവിന് എസ്ടിടി, മൂലധന നേട്ട നികുതികൾ കുറയ്ക്കണമെന്ന് ഗുർമീത് ചദ്ദയുടെ ആവശ്യം

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.

With external headwinds like bond yields, energy prices, and geopolitical conflicts out of domestic hands, the focus must shift to the overall cost of investing. Historical trends demonstrate that lower taxes—such as previous cuts to the goods and services tax (GST), corporate tax, and income tax—ultimately boost collections. Rationalising the securities transaction tax (STT) back to last year's budget levels would help restore arbitrage, while reducing the long-term capital gains (LTCG) tax could further improve sentiment.

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Regulatory changes also require a phased approach to avoid disrupting private equity investments across various sectors. Recent cash market adjustments between 3:15 pm and 3:30 pm have hindered price discovery, and while insurance reforms are necessary, they must be implemented gradually to prevent sudden shocks to the system.

"So, do reforms, prepare the markets for it, prepare the market participants for it and do it in a way where it is well absorbed and will take," Chadha said.