Benchmark Nifty staged a sharp recovery on Tuesday of 434 points from its intraday low and closed at 22,722 with gains of 1.6%, supported by positive comments from the finance minister, strong buying in IT stocks. Analysts say Indian equities are likely to extend their recovery in the near term, supported by improving sentiment following India’s Finance Minister Nirmala Sitharaman’s remarks that the government is willing to hear stakeholders’ views on removing LTCG tax. Any potential change could further improve investor sentiment and support equity market participation, although no formal proposal has been announced so far.
