$64 billion out, $5 billion in? Why LTCG tax cut may not be enough to bring FIIs back
JM Financial moved higher in an institutional flows development.
· Economic Times Markets, ET Stocks
A reassessment of long-term capital gains tax is underway as foreign investors continue their significant selloff from Indian equities. Analysts at JM Financial project that tax relief may yield only $3–5 billion in fresh inflows. This minimal increase may not be sufficient to reverse the current trend of investor exodus amidst concerns over oil prices.
The analysis
Against that, the stock is +1.1% on the day at ₹112.95, and has returned -8.5% 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 -5.1% over the same period, so JM Financial is running 3.4 points behind its peers.
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 -8.5% against Capital Markets -5.1% (3.4 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 | ₹112.95 | +1.1% | -9.4% | -8.5% | -32.6% | 0.3× | — |
Capital Markets
1M -0.1% · 3M -5.1%
JM Financial
Financial Services
1M -5.1% · 3M -13.9%
Capital Goods & Engineering
1M -8.8% · 3M -4.8%
Prices as of 3 Nov 2026, 10:33 IST. Sector moves are the average of the stocks we track in each sector.
In this story
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