New Delhi, Nov. 2 -- A rally in Reliance Industries (RIL) shares and growing optimism over a possible rollback of long-term capital gains (LTCG) tax for foreign investors gave Dalal Street plenty to cheer about on Monday, lifting both benchmark indices nearly 2%. Buying picked up through the session, with RIL stock seeing its biggest intraday upmove since April 2020.

Sebi has recommended scrapping LTCG tax for foreign investors as India seeks to revive its underperforming equity markets, Reuters reported on Monday. The market regulator has also proposed an LTCG exemption for mutual fund investors who sell existing holdings to reinvest in other funds, the report said.

Sebi's proposal is a step in the right direction, but tax efficiency a...