IPO-Bound NSE Says Traders Seeking Reprieve on India Securities Transaction Tax Hike

Good morning...

I’m Savio Shetty, and I cover equities in Mumbai.

Indian stocks have already recouped the losses suffered on budget day — when the government’s plan to raise taxes on equity derivatives trades shocked investors. But traders, worried about long-term consequences, are urging that authorities reconsider the hike (more on that below). Meanwhile, the benchmark Nifty 50’s rebound has helped it climb above its 50-day moving average — a level investors will be watching closely as a near-term support. Sentiment among foreign funds has improved since India and the US sealed a trade deal, with net inflows into local shares this month now above $1 billion, following an outflow of $3.3 billion in January. Bulls will look to Tuesday’s early gains in Asian equities to extend the momentum.

In today’s newsletter, we cover: