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Last Updated : Jun 20, 2011 11:43 AM IST | Source: Moneycontrol.com

Nifty tanks below 5300 on Indo-Mauritius tax treaty talks

Indian equity benchmarks were taking huge beating post reports that Mauritius government has agreed to revise tax treaty with India. Stocks with investments from Mauritius were witnessing selling pressure.


Indian equity benchmarks were taking huge beating post reports that Mauritius government has agreed to revise tax treaty with India. Stocks with investments from Mauritius were witnessing selling pressure.


More than 40% of foreign direct investment In India comes from Mauritius. Lanco Infratech, KS Oils, Jain Irrigation, Delta Corp and Alok Industries were down more than 10-20%.


GTL Infrastructure plunged 43% and GTL tumbled 60% despite clarification from the management on various subjects in an interview with CNBC-TV18. Technology Infra holds 23% stake in GTL Infra. Technology Infra, based out of Mauritius, classified as FDI in GTL Infra's prospectus.


The 30-share BSE Sensex was trading at 17,508, down 362 points and the 50-share NSE Nifty lost 114 points to 5,252.

Neelkanth Mishra, head of Equity Strategy India, Credit Suisse, said that the market may continue to languish and next 3-4 quarters will be sluggish for market.

First Published on Jun 20, 2011 10:22 am