When an economy is doing good, the street can absorb anything. In normal circumstances, a hike in STCG and LTCG would have made Nfty and sensex react in a very negative way. But on the day of announcement and subsequently, hike in taxes on gains made in the stock market, the market appears to have forgotten that even if the announcement was made. If nothing major happens in the next few trading sessions, there is a high probability that we have entered into a new bull phase. A phase where due to valuation, the street would be more stock and sector specific. FPI flows would be the key thing to watch as they were a set of investors who would probably be waiting for a budget, before making a move in Indian markets. If they come into markets, mid-cap stocks are likely to do well. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". This predefined screener is only available to ET Prime users.
