UBS has advised shorting the Indian rupee for now, which means FIIs may remain outside the Indian market for some time. Indian GDP growth is not looking impressive; at one point, China achieved over 10% GDP growth, while we have only managed to reach a maximum of 9.7%. Furthermore, the upcoming budget is a significant concern with only 10 trading sessions left before it is announced. If LTCG (Long Term Capital Gains) and STGC (Short Term Capital Gains) taxes are increased, the Indian market might fall further. At that time, valuations won't matter; post-tax profit will be crucial. The hope is for some tax deductions, not the opposite. Currently, the Indian economy is entirely dependent on the Finance Minister.
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