Tax Increase Shakes India’s $36 Billion Arbitrage Trade

Market Intelligence Analysis

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Why This Matters

India's arbitrage fund managers are facing lower returns due to a tax increase on equity derivatives, impacting a $36 billion sector.

Market Impact

Market impact analysis based on bearish sentiment with 90% confidence.

Sentiment
Bearish
AI Confidence
90%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

India’s arbitrage fund managers are bracing for lower returns after the government unexpectedly raised taxes on equity derivatives, a move that threatens a fast-growing sector that holds $36 billion in assets.

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Original article published by Bloomberg on February 5, 2026.
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