Shares of PNB Gilts Ltd experienced a significant rally, climbing 19% over the past five trading sessions. The latest surge saw the stock rise 13% on Wednesday to Rs 82.25, up from its previous close of Rs 72.84, pushing the firm's market capitalization to Rs 1433 crore.
This upward movement is largely attributed to recent reports suggesting that the Indian government is contemplating a reduction in taxes on bond investments for foreign investors. According to a Bloomberg report published on May 14, policymakers are actively exploring measures to enhance the attractiveness of Indian debt markets for overseas capital.
The proposed policy aims to align India’s taxation framework with global standards, thereby encouraging greater foreign participation in the country's bond market. The Reserve Bank of India (RBI) has reportedly endorsed the proposal, which is currently under review by the Finance Ministry.
Discussions regarding a lower tax burden have reportedly gained momentum as authorities seek strategies to bolster the Indian rupee and increase foreign involvement in the bond market. The timing is critical, given that the Indian rupee has been among Asia’s weakest-performing currencies in 2026, depreciating over 7% against the US dollar year-to-date. Policymakers are increasingly focused on attracting capital inflows to strengthen investor confidence globally.
During the current session, approximately 2.96 lakh shares of PNB Gilts changed hands, amounting to a turnover of Rs 2.34 crore. The stock had previously hit a 52-week high of Rs 119.84 on July 24, 2025, and a 52-week low of Rs 58.75 on March 30, 2026.