E-Paper
Sensex falls below 17,000, lowest in four months
The 30-share benchmark Bombay Stock Exchange (BSE) index, the Sensex, on Friday fell 320 points or 1.9% to close at 16,831, its lowest level since January 30, on reports of the government planning to review its tax break treaty with Mauritius and continued weakening in the rupee.
The 30-share benchmark Bombay Stock Exchange (BSE) index, the Sensex, on Friday fell 320 points or 1.9% to close at 16,831, its lowest level since January 30, on reports of the government planning to review its tax break treaty with Mauritius and continued weakening in the rupee.
“Investors got worried after the announcement came that the government is planning to review the treaty with Mauritius while further depreciation in the rupee added to the weak sentiments,” said Rikesh Parikh, vice-president, Motilal Oswal Securities.
The 50-scrip National Stock Exchange’s Nifty dropped 102 points, or 2%, to 5087.
On the sectoral front 12 out of 13 sectoral indices closed with losses between 0.9% and 3.7%. Capital goods, banking, metal PSUs, realty, power and consumer durable counters bore the brunt of hefty selling.
The BSE Capital Goods sector index suffered the most by losing 3.7% to close at 8,909 followed by BSE Banking index that closed 3.2% down to close at 11,284.
Focus on Mauritius tax
The Centre said on Friday it is looking to put in place safeguards to prevent misuse of the India-Mauritius Double Taxation Avoidance Agreement.
