Sensex slips to 2-month low on tax

Indian equities markets closed lower on Monday with a benchmark index falling 309 points to a two-month low as traders feared the government was planning to tax foreign institutional investors operating out of Mauritius. Also of concern was the lack of clarity whether overseas funds buying into Indian equities using participatory notes or P-notes would come under the capital gains tax net. The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,377.59 points, closed at 17,052.78 points, down 308.96 points or 1.78 per cent compared to its previous close at 17,361.74 points. The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended lower at 5,184.25 points, down 93.95 points or 1.78 per cent from its previous close. Broader markets were quiet too with the BSE 500 index closing 1.75 per cent down. The BSE midcap index closed 1.6 per cent lower, while the BSE small cap index ended 1.4 per cent down. Realty, power and banking sectors fared the worst. All 13 sectoral indices on the BSE closed in the red. The market breadth was negative with 919 stocks advancing, 1,955 declining and 113 remaining unchanged.