Domestic equity markets pared some losses after opening with sharp cuts as the amendment in the India-Mauritius tax treaty weighed on investor sentiment. According to the amendment, capital gains arising from the sale of shares of an Indian resident company acquired after 1 April 2017 will be taxed by India.
The Bombay Stock Exchange’s Sensex recovered nearly 100 points after dropping 250 points in early trade. The NSE’s Nifty reclaimed the 7,850 mark after breaking below 7,800 in opening trade.
The broader markets outperformed benchmark indices.
Dr Reddy’s was the biggest loser on the Sensex, followed by Adani Ports, Coal India, ONGC and BHEL. Axis Bank, NTPC, Maruti, Asian Paints led the gains.
The rupee depreciated by another 17 paise to 66.84 against the US dollar in early trade on increased demand for the greenback from importers amid appreciation in the American currency overseas. Dealers attributed the fall to a lower opening of the domestic equity market.
On Tuesday, the rupee had lost 9 paise to close at 66.67 against the US dollar.
Asian Stocks Turn Lower on Wary Outlook
Asian shares gave up early gains and turned lower as investors shrugged off an overnight rally in global stocks and looked to bonds in the absence of signs of a sustainable recovery in China and other emerging markets.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2 percent after being up as much as 0.4 percent in early trade.
Hong Kong shares led regional stocks lower with the benchmark index falling 1 percent, followed by Korea down 0.6 percent and losing 0.4 percent. They are the most vulnerable to a sustained downturn in the Chinese economy.
Japanese shares were among the rare bright spots in the region, with the Nikkei up 0.3 percent due to a broadly weak yen, though overall sentiment remained cautious.
(With agency inputs)
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