Speculation Over STT Cut Lifts Sentiment for Indian Stocks

Speculation Over STT Cut Lifts Sentiment for Indian Stocks Good morning... I’m Ashutosh Joshi in Mumbai, where local markets had a rare moment in the sun on Tuesday. Stocks, bonds and the rupee climbed, with equity investors speculating about a cut in the securities transaction tax after a rather noncommittal remark from the finance minister (more on that below), and currency traders betting the rupee may have turned a corner. Neither is assured, but for a market short on good news and trailing most regional peers this year, even the possibilities proved enough to lift the mood. The global AI selloff also fueled another hope: that some of the foreign money may find its way into cheaper Indian stocks, particularly IT shares, which had their best day in 17 months. There are other reasons for global investors to look at India. Earlier, at the Bloomberg New Economy Forum, Blackstone President Jon Gray called India the world’s most liquid market outside the US and the easiest place to get an IPO done this year. Jio Platforms may be proving his point, with the company said to have drawn more than $20 billion in bids for what could be India’s biggest-ever IPO. Add attractive Nifty valuations, as we wrote yesterday, and the case for India looks a little more compelling for foreign investors, who have pulled $32 billion from stocks this year. Catch up on the forum’s first day in this special India Edition. Meanwhile, Asian stocks are trading slightly higher early on Wednesday, rebounding from two days of losses, on expectations the Federal Reserve may not need to raise interest rates aggressively next year.