The BSE Sensex and NSE Nifty are likely to open in green tracking SGX Nifty. (PTI)
The BSE Sensex and NSE Nifty are expected to open in green after in a bid to boost markets, government on Tuesday accepted the recommendation of the A P Shah committee that said minimum alternate tax (MAT) should not be imposed on overseas portfolio investors retrospectively. The markets will also track SGX Nifty that was up 28.50 points, or 0.36 per cent, at 7,818 at 8.18 am IST.
Nikkei was up 128.85 points, or 0.71 per cent at 18,294.54 while Hang Seng and Shanghai were down 1.46 per cent and 2.65 per cent at 20,877 and 3082.86, respectively.
Wall Street slumped more than 2 per cent on Tuesday, after weak data from China escalated fears that the slowdown in the world’s second-largest economy will constrain global growth. The sell off was broad. All 10 major S&P sectors were lower between 1.8 per cent and 3.4 percent. All 30 Dow components were down between 1.5 and 4 per cent.
Back home, equity markets on Tuesday went into a down spiral, with the benchmark Sensex crashing 587 points to close at a one-year low of 25,696.44 owing to slower-than-expected GDP growth coupled with a global sell-off after a clutch of data showed China economy is in for more pain.
Jimeet Modi, chief executive officer, SAMCO Securities, said, “Tuesday’s fall was in continuation of the downward spiral faced across emerging markets and India can’t remain immune from such negative sentiments. The selling of FIIs to the tune of $2.5billion in the month of August and IOC FPO of Rs 9500 crore sucked away huge liquidity from the markets leading to tremendous selling pressure.”
(With inputs from agencies)
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