Sensex hit by Mauritius tax treaty review

The Nifty fell to its lowest intraday levels since January 30 on Friday after MoS Finance SS Palanimanickam said India is reviewing its tax treaty with Mauritius.

May 04, 2012 / 14:49 IST

The Nifty fell to its lowest intraday levels since January 30 on Friday after MoS Finance SS Palanimanickam said India is reviewing its tax treaty with Mauritius.

The review is sparking fears of more foreign selling in Indian markets given the bulk of overseas investors are believed to be based in Mauritius to avoid paying capital gain taxes.

The Nifty fell 1.95%, after earlier falling to as low as 5,082.45 points, its lowest since late January. The benchmark 30-share BSE index fell 1.97%.

The NSE Bank Nifty was down 3.4% while the BSE capital goods index was down 3.9%.

first published: May 4, 2012 02:26 pm

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