Valuation, capital gains tax treatment key risks for the market: Analysts

The government, reports suggest, may rationalise long-term capital gains tax (LTCG) structure by bringing parity between similar asset classes

After a sharp rally in the Indian markets from their June 2022 low, risks are now emerging in the form of high valuations, moderation in growth amid recession across major economies, said analysts. However, they believe the Indian markets will be able to tide over this uncertain short-term phase amid volatility.

From their June 2022 lows, the S&P BSE Sensex and the Nifty 50 have gained around 18 per cent each and have outperformed their global peers by a wide margin. A significant rally seen since then on renewed foreign investor participation and a resilient domestic macroeconomic situation, according to