Panic selling at Indian equities markets
June 20th, 2011 - 1:04 pm ICT by IANS
Mumbai, June 20 (IANS) Indian equities markets Monday started the trading week on a very negative note as reports of India resuming talks on a tax treaty with Mauritius triggered a panic selling.
Over the weekend, a senior Central Board of Direct Taxes (CBDT) official was quoted as having said that India and Mauritius officials 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.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,060.17 points and slipped to an intra-day low of 17,341.38 points, crept up to rule at 17,546.04 points — down 324.49 points or 1.82 percent from its previous close at 17,870.53 points.
The 50-scrip S&P; CNX Nifty of the National Stock Exchange was also trading lower at 5,281.7 points, down 1.56 percent.
Broader markets were in the red as well, with the BSE midcap index down 2.99 percent and the BSE smallcap index down 3.11 percent.
The market breadth was negative, with 394 stocks advancing, 2,067 on the decline and 81 remaining unchanged.
There was only one gainer on the Sensex: Hero Honda. Losers included Reliance Infra, Reliance Communications, Cipla and NTPC.
Asian markets too were ruling lower.
The Nikkei of the Japanese stock exchange was flat at 9,348.78 points, while the Hang Seng of the Hong Kong stock exchange was trading 0.42 percent lower at 21,604.32 points.
The Chinese Shanghai composite index moved down 0.94 percent to trade at 2,618.1 points.
- Talk of tax treaty with Mauritius spooks Indian markets (Second Lead) - Jun 20, 2011
- Indian equities markets pare intra-day losses (Lead) - Jun 20, 2011
- Talk of tax treaty with Mauritius spooks Indian markets (Roundup) - Jun 20, 2011
- Sensex closes 133 points lower, RIL weighs heavy (Roundup) - Jun 17, 2011
- Sensex ruling lower, IT, telecom drag broader markets - Jun 17, 2011
- Sensex closes 133 points lower, RIL weighs heavy (Lead) - Jun 17, 2011
- Sensex slips to two-month low over tax issues (Roundup) - Mar 26, 2012
- Sensex falls 58 points; IT, metal stocks slump - Apr 10, 2012
- Sensex weak, IT, capital goods under selling pressure - Mar 19, 2012
- Sensex closes dull, IT, metal stocks lose (Second Lead) - Jan 18, 2012
- Sensex in red, realty, banking under selling - Mar 26, 2012
- Sensex falls 100 points on weak Asian cues - Apr 04, 2012
- Sensex slumps 220 points on weak Asian cues - Apr 09, 2012
- Sensex turns volatile; realty, oil, gas stocks fall - Mar 22, 2012
- Sensex in red in afternoon trade, consumer durables slip - Mar 28, 2012
Tags: asian markets, bombay stock exchange, cipla, direct taxes, double taxation avoidance, foreign direct investment, gainer, hero honda, hong kong stock, hong kong stock exchange, japanese stock, kong stock exchange, market breadth, midcap index, national stock exchange, sensex, sensitive index, shanghai composite index, smallcap index, tax treaty