reforms in India lag behind growth'
A benchmark index for Indian equities
markets closed a whopping 363 points lower Monday as traders
off-loaded stocks across the market breadth after a report that
the tax department was seeking to tax profits made by companies
Mumbai: A benchmark
index for Indian equities markets closed a whopping 363 points
lower Monday as traders off-loaded stocks across the market
breadth after a report that the tax department was seeking to tax
profits made by companies registered in Mauritius.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange
(BSE), which opened at 18,060.17 points closed at 17,506.63 points
-- down 363.9 points or 2.04 percent from its previous close at
It had slipped to an intra-day low of 17,341.38 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange also
ended lower at 5,257.9 points, down 2.02 percent.
Broader markets closed in the red as well, with the BSE midcap
index down 3.18 percent and the BSE smallcap index down 3.26
The market breadth was negative, with 554 stocks advancing, 2,286
on the decline and 80 remaining unchanged.
Over the weekend, a senior Central Board of Direct Taxes (CBDT)
official was quoted as having said that officials of India and
Mauritius are expected to meet soon to work out the details of the
new Double Taxation Avoidance Agreement.
India receives over 40 percent of its foreign direct investment
through companies and funds registered in Mauritius.
The tax department is seeking to tax gains made by companies
registered in Mauritius and operating in India.
There were only three gainers on the 30-scrip Sensex: Bharti
Airtel, up 2.35 percent at Rs.389.30; Hindustan Unilever, up 0.36
percent at Rs.322.20 and Hero Honda, up 0.16 percent at Rs.1,733.
Prominent among the losers were RCom, down 7.89 percent at
Rs.87.60; Reliance Infra, down 6.07 percent at Rs.545.25, Tata
Motors, down 5.15 percent at Rs.930.25 and RIL, down 3.89 percent
According to data available with the Securities and Exchange Board
of India (SEBI), foreign institutional investors sold stocks worth
Asian markets closed subdued.
The Nikkei of the Japanese stock exchange ended flat at 9,354.32
points, while the Hang Seng of the Hong Kong stock exchange closed
0.44 percent lower at 21,599.51 points.
The Chinese Shanghai composite index moved down 0.82 percent to
trade at 2,621.25 points.
European bourses too were trading weak.