Indian Markets Rally: Ajay Bagga On FII Return, LTCG Tax Cut And Stock Market Recovery

Indian equity markets have staged a strong recovery over the past four sessions, supported by renewed foreign investor inflows and a shift in global asset allocation away from AI-led stocks. Ajay Bagga, Senior Market Veteran, explains the factors driving the rebound and why India is attracting fresh investment. He also discusses the growing demand for a Long-Term Capital Gains (LTCG) tax cut and its potential impact on investor sentiment. However, he cautions that crude oil prices and the Iran conflict remain key risks. A sustained recovery will depend on geopolitical stability and foreign investors turning net buyers.