Goodbye LTCG tax? SBI says government can absorb ₹50,000 crore revenue loss as Budget 2027 hopes rise
State Bank of India flagged a risk in an institutional flows development for FY28.
· Business Today Mkts, Economic Times Markets, ET Stocks
SBI Research says scrapping LTCG tax could cost the government ₹40,000–50,000 crore in FY28, a manageable fiscal hit. The proposal comes as Finance Minister Nirmala Sitharaman signals openness to investors' tax concerns amid sustained FII outflows.
Key facts
- Period
- FY28
The analysis
State Bank of India reported ₹50,000 crore and ₹40,000 for FY28. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is +1.2% on the day at ₹1,018.50, and has returned -6.1% over three months. It sits 17% below its 52-week high. The banks sector has moved -2.8% over the same period, so State Bank of India is running 3.3 points behind its peers.
This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it. On the day the stock is +1.2%, so a modest reaction.
Why it matters
- Sustained FII or DII direction moves the whole market, not just the names being bought — it sets the tape's tone.
Market context
- In focus: State Bank of India (SBI) (SBIN), in Banks.
- Over three months: State Bank of India (SBI) -6.1% against Banks -2.8% (3.3 points behind).
| Company | Price | Day | 1M | 3M | From 52-wk high | Volume vs 20-day | Market cap |
|---|---|---|---|---|---|---|---|
| State Bank of India (SBI)SBIN · Banks | ₹1,018.50 | +1.2% | +6.2% | -6.1% | -17.0% | 1.4× | — |
Banks
1M +2.0% · 3M -2.8%
State Bank of India (SBI)
Prices as of 6 Nov 2026, 16:11 IST. Sector moves are the average of the stocks we track in each sector.
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