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Markets extend gains in late trade
Oct-13-2026

Indian equity markets added gains in late afternoon session as Finance Minister Nirmala Sitharaman’s comments bolstered the market sentiment.  Finance Minister has indicated that the government is open for a discussion on the removal of long-term capital gains (LTCG) tax during Budget consultations. Further, strong gains among large-cap IT and Banking counters supported the up move. IT stocks turned in some of the market's best performances on the day with BSE IT index surging over 4% post HCL Technologies Q2 numbers. HCL Technologies has reported a 21.18% rise in its consolidated net profit at Rs 5,132 crore for Q2FY27, as compared to Rs 4,235 crore for the same quarter in the previous year.

On the global front, Asian equity markets were trading mixed amid weakness in tech stock as warnings mounted around the AI trade. European equity markets were trading higher as crude oil prices retreated from their recent highs.

The BSE Sensex is currently trading at 72789.75, up by 865.07 points or 1.20% after trading in a range of 71703.56 and 72791.54. There were 24 stocks advancing against 6 stocks declining on the index.

The top gaining sectoral indices on the BSE were IT up by 4.42%, TECK up by 3.11%, Realty up by 1.96%, Consumer Durables up by 1.04% and Metal up by 0.96%, while Healthcare down by 0.50%, Power down by 0.31% and Telecom down by 0.06% were the only losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 7.66%, TCS up by 6.01%, Tech Mahindra up by 4.09%, Infosys up by 3.81% and Hindustan Unilever up by 2.94%. On the flip side, Eternal down by 1.49%, Maruti Suzuki India down by 1.11%, Kotak Mahindra Bank down by 1.00%, Interglobe Aviation down by 0.66% and Power Grid Corporation down by 0.62% were the top losers.

Meanwhile, amid sustained foreign portfolio investor (FPI) outflows from Indian equity markets, the State Bank of India (SBI) Research in its Ecowrap report has called for abolishing the long-term capital gains (LTCG) tax on equities which can help ensure such investors to remain invested in the market for a longer duration. It said the government must seriously look into anchoring hot money flows into equity segment by extending the holding period to 2-3 years and eliminating the long-term capital gains tax on equities.

According to the report, the proposal aims to anchor volatile foreign capital flows in the equity segment and reduce the risk of sudden outflows that can put pressure on the rupee. Presently, FPIs pay a 12.5% LTCG tax on the investment in equities. The Union Budget 2026 has kept the LTCG tax on listed equities and equity mutual funds at 12.5%, extending a framework established during a major fiscal overhaul in 2024. So far in October 2026, foreign investors have withdrawn Rs 44,166 crore from Indian equities, and in the year, the outflow has been over Rs 3 lakh crore, as elevated crude oil prices, a firmer US dollar and higher US bond yields weigh on investor sentiment. Also, the artificial intelligence-led rally in North Asian markets is attracting more foreign capital. 

SBI Research has also suggested streamlining the repatriation of export proceeds within a reasonable period of around six months, noting that exporters typically extend credit periods of a similar duration to overseas buyers. Any extension beyond this period should be granted on a case-by-case basis. The measures aim to strengthen foreign currency inflows and improve the stability of India's external accountsIt said the government should consider policy changes to encourage long-term foreign investment and ensure timely repatriation of export earnings. Apart from this, the report also called for greater clarity on withholding tax applicable to external commercial borrowings (ECBs), currently indicated at 5-20 per cent. This is necessary to ensure benefits under DTAAs (Double Taxation Avoidance Agreements) and for consistent application of general and specific clauses by authorities.

The CNX Nifty is currently trading at 22646.60, up by 283.25 points or 1.27% after trading in a range of 22288.45 and 22647.20. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were HCL Technologies up by 7.10%, Shriram Finance up by 6.25%, TCS up by 6.04%, Tech Mahindra up by 4.23% and Infosys up by 3.64%. On the flip side, Kotak Mahindra Bank down by 0.91%, Maruti Suzuki India down by 0.87%, Max Healthcare Inst. down by 0.84%, Eternal down by 0.80% and Power Grid Corporation down by 0.40% were the top losers. 

Asian equity markets were trading mixed; Nikkei 225 slipped 1309.92 points or 1.93% to 67,721.00, Taiwan Weighted lost 960.65 points or 1.99% to 48,341.31, KOSPI dropped 348.89 points or 5.78% to 6,035.35 and Jakarta Composite plunged 29.56 points or 0.5% to 5,906.59, while Hang Seng advanced 47.8 points or 0.2% to 24,319.00, Straits Times rose 21.42 points or 0.39% to 5,436.90 and Shanghai Composite strengthened 3.62 points or 0.1% to 3,800.86.

European equity markets were trading higher; UK’s FTSE 100 increased 75.75 points or 0.71% to 10,732.03, France’s CAC rose 8.92 points or 0.11% to 7,841.80 and Germany’s DAX gained 153.32 points or 0.61% to 25,431.00.
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