Lack of clarity on the General Anti-Avoidance Rules (GAAR) provisions has brought a lot of uncertainty in the minds foreign institutional investors (FIIs), said Hiren Ved, chief investment officer, Alchemy Capital Management. He sees a likelihood of FIIs shelling out 15% cap gains on short-term capital gains.
Given this confusion, he expects arbitrage funds to unwind their positions towards this expiry leading to a near term correction. "We could see some pressure on the market until clarity emerges on this, which my sense is will only happen in the early days of April," he told CNBC-TV18. This aside, the market also has to deal with fundamental headwinds like sticky oil prices, light liquidity and rupee appreciation. "I donDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
