SBI economists call for scrapping LTCG tax on equities
State Bank of India flagged a risk in an institutional flows development.
· ET Stocks, Economic Times Markets
SBI economists are advocating for the elimination of long-term capital gains tax to stimulate sustained investment in Indian equity markets. This proposal arises amid substantial foreign portfolio investor withdrawals exceeding Rs 3 lakh crore this year, prompting concerns. Furthermore, the lack of AI-focused stocks is contributing to these market exits.
The analysis
State Bank of India reported Rs 3 lakh crore. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -1.9% on the day at ₹941.00, and has returned -9.0% over three months. It sits 23% below its 52-week high. The banks sector has moved -4.9% over the same period, so State Bank of India is running 4.1 points behind its peers.
For State Bank of India, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Sustained FII or DII direction moves the whole market, not just the names being bought — it sets the tape's tone.
Market context
- The company directly in focus is SBIN.
- Sector exposure: Banks, Capital Goods & Engineering, Capital Markets.
- The immediate tone of coverage reads positive.
In this story
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