FIIs were net sellers with the tune of ` 512.57 crore (prov. cash market fig.)
The BSE Sensex was down 363.90 points or 2.04% to 17,506.63, its lowest closing level since 10 February 2011. The Sensex gained 54.64 points at the day's high of 17,925.17 in early trade. The index lost 556.15 points at the day's low of 17,314.38 in morning trade. The S&P CNX Nifty was down 108.50 points or 2.02% to 5,257.90, its lowest closing level since 10 February 2011. The Nifty hit low of 5,195.90 in intraday trade. The BSE Mid-Cap index shed 3.18% and the BSE Small-Cap index declined 3.18%. Both these indices underperformed the Sensex.
The market breadth was extremely weak. On BSE, 2,298 shares declined while 551 shares advanced. A total of 72 shares remained unchanged. Among the 30-member Sensex pack, 27 stocks fell and only three of them rose.
BSE clocked turnover of ` 2818 crore, higher than ` 2691.58 crore on Friday, 17 June 2011.
FOR TODAY: Yesterday's steep intraday slide in early trade was on reports (?) that the Indian Government is reviewing a Double Tax Avoidance Agreement (DTAA) treaty with Mauritius. The reports rattled the market given that a big chunk of India's Foreign Direct Investment (FDI) and FII money comes from Mauritius. Reports later suggested that the Government is not currently in talks with Mauritius to review the double tax avoidance treaty. The India-Mauritius tax treaty provides that capital gains arising in India from the sale of securities can only be taxed in Mauritius, and since the island nation does not tax capital gains, it leads to zero taxation. Talks on the treaty were last held in 2008 but had failed following Mauritian Government's insistence to continue with the existing agreement. India is estimated to lose over $600 million a year in revenues on account of the double tax avoidance treaty with Mauritius.
Though EU markets closed in RED but US markets closed in GREEN. Asian market are trading in GREEN. However, SGX Nifty if trading at 5259.50 (at 8.40 am), down 5.50 indicates that Nifty may open flat to negative.
TODAY WATCH 5250 AND 5211 ON THE DOWN SIDE WHEREAS ON THE UPSIDE NOW 5300 AND 5350 WILL ACT AS MAJOR RESISTANCE.
Though EU markets closed in RED but US markets closed in GREEN. Asian market are trading in GREEN. However, SGX Nifty if trading at 5259.50 (at 8.40 am), down 5.50 indicates that Nifty may open flat to negative.
TODAY WATCH 5250 AND 5211 ON THE DOWN SIDE WHEREAS ON THE UPSIDE NOW 5300 AND 5350 WILL ACT AS MAJOR RESISTANCE.
