Sensex, Nifty Rebound After Weak Opening on Hopes of LTCG Tax Relief

October 14, 2026

Mumbai: The Indian stock market opened with a decline on Wednesday, but both key indices, Sensex and Nifty, soon recovered and moved into the green. The market was supported by reduced selling by institutional investors amid hopes of relief in long-term capital gains (LTCG) tax and securities transaction tax (STT). However, weak global cues continued to weigh on market sentiment.

The BSE Sensex fell 116.42 points, or 0.16 percent, to 72,917.36 at the start of trading. The NSE Nifty 50 fell 30.85 points, or 0.14 percent, to 22,691.10. The GIFT Nifty also fell 141 points, or 0.62 percent, to 22,709.50.

Market supported by hopes of relief in LTCG and STT

VK Vijaykumar, Chief Investment Strategist at Geojit Investments Ltd., said the sharp rally in the market on Tuesday was unexpected. The Nifty rose 358 points despite a downtrend in the broader market. He said the rally was primarily due to short-covering, with traders betting on a decline having to close their positions.

He added that Union Finance Minister Nirmala Sitharaman’s comments at the Bloomberg New Economy Forum also supported the market. The Finance Minister indicated that the government would review suggestions received from stakeholders regarding the LTCG tax and Securities Transaction Tax (STT). This has raised investor expectations of potential changes to the tax regime.

Rupee Strength Impacts Selling by Foreign Investors

According to Vijaykumar, the strengthening of the rupee has helped mitigate selling pressure from foreign institutional investors (FIIs). The rupee appreciated by 1.5 percent in the past two trading sessions following steps taken by the Reserve Bank of India to curb speculation in the currency market.

However, he warned that high US bond yields and rising crude oil prices remain major challenges for the market. The US 10-year bond yield was hovering around 5.2 percent, while Brent crude prices hovered around $106 per barrel.

He said these challenges could make it difficult to sustain the market’s rally. However, sectors such as financial services, telecom, metals, and automobiles may remain relatively strong due to expectations of strong second-quarter results.

Crude oil and gold prices rise

Commodity markets also saw gains. Crude oil prices rose 0.64 percent to $94.75 per barrel, while Brent crude rose 0.53 percent to $106.25 per barrel. Gold prices recorded a marginal gain of 0.05 percent and were trading at $4,163.71.

US stock market futures showed a mixed trend. Dow Jones futures rose 0.16 percent to 51,751.48. In contrast, S&P 500 futures fell 0.02 percent to 7,805.45, and Nasdaq futures fell 0.15 percent to 27,204.38.

22,480 for Nifty and 72,500 for Sensex are key levels

Kotak Neo’s Head of Equity Research Shrikant Chauhan said based on technical analysis that support was found around the Nifty’s 22,300 level and the Sensex’s 71,700 level, after which the market saw a sharp recovery.

He explained that the formation of a long bullish candle on the daily chart and a reversal pattern on the intraday chart are positive signs for the market.

According to Chauhan, the 22,480 level for the Nifty and 72,500 for the Sensex are key supports. As long as both indices remain above these levels, the market could remain bullish.

Meanwhile, the 22,850 level for the Nifty and 73,500 for the Sensex could act as immediate resistance. A sustained rise above these levels could take the Nifty to 23,000 and the Sensex to 74,000.

However, if the market slips below these key support levels, the bullish trend could weaken, and traders may have to reconsider their buy positions.