The Indian equities ended tad lower in a bearish trade on Wednesday as traders pressed 'sell" button amid worries about the tax impact after the government late Tuesday announced that starting next year, a capital gains tax on investments coming from Mauritius will be imposed as it seeks to curb black money.
The Mauritius-India tax treaty is a big worry for the Singaporean investment into India as it also automatically applies to the India-Singapore tax agreement, making foreign investors jittery.
The BSE SENSEX closed at 25597.02, down by 175.51 points, or by 0.68 per cent, and the NSE Nifty ended at 7848.85, down by 38.95 points, or by 0.49 8 per cent.
In the bearish trade, the BSE Sensex touched intraday high of 25762.49 and intraday low of 25409.24, while the NSE Nifty touched intraday high of 7893.1 and intraday low of 7780.9.
The top losers of the BSE Sensex pack were Bharti Airtel Ltd. (Rs. 358.70,-2.75%), State Bank of India (Rs. 184.95,-2.30%), Tata Motors Ltd. (Rs. 380.10,-2.26%), Dr. Reddy's Laboratories Ltd. (Rs. 2869.20,-2.02%), Bharat Heavy Electricals Ltd. (Rs. 126.25,-1.87%), among others.
Meanwhile, Axis Bank Ltd. (Rs. 498.40,+2.16%), Asian Paints Ltd. (Rs. 912.60,+1.55%), Maruti Suzuki India Ltd. (Rs. 3889.85,+1.12%), Larsen & Toubro Ltd. (Rs. 1324.00,+0.41%), NTPC Ltd. (Rs. 141.20,+0.39%), were among top gainers on BSE.
On the sectoral front, PSU and realty stocks emerged as top losers, falling as much as 0.98 per cent and 0.88 per cent respectively.
The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2872, shares advanced were 1183 while 1514 shares declined and 175 were unchanged.
On the global front, the Asian stocks ended mixed amidst a rally in commodity prices and a surge in US stocks overnight after a rise in US job openings to the second highest level on record in March signaled a strengthening labour market recovery in the world"s biggest economy. China"s Shanghai Composite settled with slim gains but Hang Seng fell and Japan"s Nikkei 225 rallied but a stronger yen curbed gains.
Dion Global Solutions