No, it is correct.
Your capital gain is taxable in Indiana because it it considered Indiana source income and in NY your state or residence. As a resident, you pay state tax (and city tax if a New York City or Yonkers resident) on all your income no matter where it is earned.
However, on NY state, you can claim credit for taxes paid to another state. This credit is allowable only for the portion of the tax that applies to income sourced to and taxed by the other taxing authority (state, a local government within another state, the District of Columbia, or a Canadian province) while you were a New York State resident.
Income Received from Indiana Sources
ny.gov
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