Stock market falls on Mauritius tax treaty changes

Zee Media Bureau

New Delhi: Indian stock markets fell Wednesday on worries future foreign equity inflows would be hit after the country said it will start imposing capital gains taxes on investments coming from Mauritius starting next year.

Mauritius is the top source of foreign funds into India, though analysts welcomed India`s action to impose the tax on future investments and not existing holdings.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged lower by 44.90 points or 0.57 percent, at A7,842.90 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,548.97 points, traded at 25,622.26 points (at 9.30 a.m.) -- down 150.27 points or 0.58 percent from the previous close at 25,772.53 points.

The Sensex has so far touched a high of 25,643.08 points and a low of 25,409.24 points during the intra-day trade.