Besides election results, a bigger worry has emerged for investors

Currently, India follows a differential tax structure for various financial assets...

Christopher Wood, the global head of equity strategy at brokerage firm Jefferies, has said any changes in capital gains tax in the upcoming July budget could act as triggers for a near-term correction in Indian markets..

While Woods is a highly popular equities analyst whose word carries weight with investors, he has offered no sound reason why he thinks the government will tweak the capital gains tax..

Currently, if gains from both stocks and equity-oriented mutual funds are booked within one year of holding, investors must pay 15% as short-term capital gains tax (STCG)..

This need for simplification frequently triggers speculation before every budget about possible changes in the capital gains tax which may impact equity investors favourably or unfavourably..