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The Economic Times

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Budget 2026: Markets cautiously eye FII returns amid STT hike

India's budget received cautious optimism, but reversing foreign investor outflows remains uncertain. While capital expenditure plans align with expectations, higher taxation on derivatives and a significant premium over other emerging markets deter FIIs. Analysts suggest sustained earnings growth and valuation corrections are needed to attract renewed foreign interest.

2 Feb 2026 12:57 pm