reuters
Mumbai, Feb 6: Indian shares slid and the rupee weakened as a global market rout whacked sentiment, adding to existing investor concerns ahead of a central bank meeting this week and a new capital gains tax later in the year.
The broader NSE Nifty and the benchmark BSE Sensex each fell about 1.6 percent on Tuesday, marking a sixth consecutive session of falls after earlier falling as much as 3.7 percent each.
Meanwhile, the rupee retreated to 64.24/25 from Monday’s close of 64.07. But bonds gained as investors sought safe havens. The benchmark 10-year bond yield was down 3 basis points at 7.57 percent, after last week posting its biggest weekly decrease since February 2017.
The slump in Wall Street overnight comes as India’s record-setting share rally came under threat following the government’s announcement of a 10 per cent long-term capital gains tax in equities, which starts in April.
That has raised concerns about a drop in foreign investment into India. So far this year, overseas funds have bought a net $2.4 billion in domestic shares, having also been net buyers in each of the six previous years.
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