Can cutting LTCG, STCG revive FPI flows? JM Financial, Bernstein answer
JM Financial moved lower in an institutional flows development.
· Business Standard Mkts
A reduction in LTCG tax would be desirable for a capital-starved economy but would not, by itself, trigger sustained foreign institutional investor (FII) inflows, said Venugopal Garre of Bernstein.
The analysis
Against that, the stock is +4.5% on the day at ₹112.60, and has returned -11.2% over three months. It sits 33% below its 52-week high, which means a good deal of bad news was already in the price. The capital markets sector has moved -6.3% over the same period, so JM Financial is running 4.9 points behind its peers.
This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it. On the day the stock is +4.5%, so the tape moved decisively on this.
For JM Financial, the question is how much of this is already reflected in the price and how much re-rates the capital markets 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
- In focus: JM Financial (JMFINANCIL), in Capital Markets.
- Over three months: JM Financial -11.2% against Capital Markets -6.3% (4.9 points behind).
- At least 25% below the 52-week high: JM Financial (33%).
| Company | Price | Day | 1M | 3M | From 52-wk high | Volume vs 20-day | Market cap |
|---|---|---|---|---|---|---|---|
| JM FinancialJMFINANCIL · Capital Markets | ₹112.60 | +4.5% | -16.5% | -11.2% | -32.8% | 0.8× | — |
Capital Markets
1M -2.9% · 3M -6.3%
JM Financial
Financial Services
1M -8.8% · 3M -14.9%
Capital Goods & Engineering
1M -10.9% · 3M -5.3%
Prices as of 2 Nov 2026, 14:58 IST. Sector moves are the average of the stocks we track in each sector.
In this story
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