New Delhi, Jan. 27 -- With the Union Budget 2026 presentation just a few days away, chatter on the long-term capital gains (LTCG) tax is gaining momentum among investors. Hopes are high that the government will make some changes in the LTCG tax rate and the exemption limit of Rs.1.25 lakh.

Experts believe a lower tax rate and increased exemption limit may influence market sentiment, which is weak due to massive selling by foreign institutional investors (FIIs) and geopolitical uncertainties.

They say a change in LTCG tax policy can significantly boost market sentiment, both domestically and among foreign investors.

"Since the last few months, market participation has been reducing due to a bad market cycle. While the government has tak...