ETMarkets Smart Talk: Amit Gupta on why STT hike may cool speculative F&O trades without hurting investors

A recent hike in Securities Transaction Tax on derivatives aims to curb excessive speculation. Experts believe this move will impact high-frequency, low-margin trades. Long-term investors are unlikely to be affected. Valuations, earnings, and currency stability are key factors for foreign investor flows. The market faces a challenging period requiring balanced preparation.