Indian markets trade in green amid hopes of LTCG relief and reversal in FII outflows

New Delhi [India], October 15 (ANI): The domestic markets show an uptick in early trade, even as key global and Asian markets undergo steep corrections triggered by persistent inflation concerns in the United States. The US annual inflation rate accelerated to 3.7 per cent in September 2026, up from 3.4 per cent in each of the previous two months.
The BSE Sensex traded at 73,003.12 points, advancing 221.23 points or 0.30 per cent, while the NSE Nifty 50 traded at 22,673.05 points, gaining 50.35 points or 0.22 per cent. 
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, "From the Indian market perspective, the correction in AI stocks is a positive. FIIs who have been selling Indian stocks and buying AI stocks will halt this trend and under favourable conditions might even reverse it."
He mentioned that indications that the finance ministry might reconsider the taxation of LTCGs (Long-Term Capital Gains) in the coming Budget have the potential to keep the market resilient. 
“The strength in the IT stocks following the results of HCLT and the optimism surrounding that will hold the IT index strong. The expected good Q2 results from financials can impart resilience to the market," he said.
Echoing similar thoughts, Mayuresh Joshi, Director and Head of Equity Research at MarketSmith India, noted that Indian equity markets have likely weathered the worst of their structural sell-off, driven by stabilizing corporate earnings and attractive valuations despite formidable macro headwinds.
"The pivotal point becomes the geopolitical crisis, and therefore whatever is emanating from there is not just affecting India but the rest of the globe," Joshi told ANI, highlighting hotter-than-expected US inflation prints and massive emerging market capital outflows. However, he noted that a potential de-escalation following mid-term elections could reverse market trends swiftly. 
At the time of reporting, US markets posted declines as Dow Jones Futures stood at 51,545.63, down by 75.85 points, the S&P 500 declined by 86.51 points to reach 7,718.94. The Nasdaq experienced the sharpest pullback, shedding 511.51 points (-1.88%) to trade at 26,692.87.
US consumer inflation rose to 3.7 per cent in September from 3.4 per cent in August, driven largely by a sharp increase in gasoline prices, adding to concerns over persistent price pressures ahead of the Federal Reserve's next interest rate decision.
“This concern triggered big selling in the US market, which led to a sharp correction of 1.88% in the tech-heavy Nasdaq. AI stocks bore the brunt of the selling," Vijayakumar said.
Across Asian markets, Japan's Nikkei 225 declined 5.20 per cent to 64,223.00 points, South Korea's Kospi retreated 8.72 per cent to 5,527.12 points, and the SET Composite in Thailand dipped 0.78 per cent to 1,563.74 points. Opposing this trend, GIFT NIFTY emerged as the sole gainer, rising 65.00 points (+0.29%) to sit at 22,687.50.
"The fear has spread to South Korea and Japan, impacting their markets in early trade today. Nikkei is down by more than 4% and Kospi down by more than 7%," Vijayakumar added.
At the time of reporting, Brent crude stood at USD 104.38 per barrel, down 1.58 per cent, Crude Oil decreased by USD 0.93 (-0.98%) to USD 94.16, while gold gained 1.12 per cent to trade at USD 4,151.35 per ounce. (ANI)