Rs 5 lakh crore worth FII outflows since 2024 capital gains tax hike wreak havoc on Dalal Street. Is a reversal on the cards?

Foreign investors have sold over Rs 5 lakh crore of Indian equities since the 2024 capital gains tax hike, with outflows intensifying in 2026. Finance Minister Nirmala Sitharaman’s comments on LTCG and STT have revived hopes of tax relief, but analysts remain divided on whether any rejig can trigger a sustained FII comeback.