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03-27-2012, 09:39 AM #1
Sensex falls 309 pts on FII tax worries
The BSE benchmark Sensex on Monday plunged 309 points to about 2-month low on heavy selling by funds concerned over market reports that the government may move to levy short-term capital gains tax for derivative products sold to foreign investors.
The Sensex dropped 308.96 points, or 1.78 per cent to 17,052.78, a level last seen on January 31. Financial and realty stocks led the fall.
All the 30 Sensex scrips and the 13 sectoral indices closed with losses of up to 3.58 per cent.
Similarly, the 50-scrip National Stock Exchange index Nifty dropped 93.95 points, or 1.78 per cent to 5,184.25.
Brokers said investors off-loaded positions amid speculations that the government may tax participatory notes (P-notes) of foreign investors for buying into Indian equities.
They said banking and interest-sensitive realty sectors suffered the most ahead of the government's borrowing calendar due this week.
The market has been on the decline on costly crude oil and weakening rupee, besides weak global markets, they added.
The realty sector stocks with significant exposure in Mumbai slumped following reports that the Maharashtra is planning to hike stamp duty by 160 times.
The realty sector index suffered the most by losing 3.58 per cent to 1,726.42 followed by power index by 2.56 per cent to 2,081.89. Banking index dropped by 2.44 per cent to 11,570.74.