Shares mark steepest fall in nearly one month on retrospective tax worries

Benchmark BSE index closed 1.95 per cent lower, while broader NSE index fell 1.83 per cent, marking their steepest single-day decline since March 26.

A weak start to the January-March earnings season with Tata Consultancy Services and Reliance Industries earnings failing to enthuse investors, also weighed on sentiment. File photo

Shares fell nearly 2 per cent on Monday, marking their steepest fall in nearly one month as most blue-chips declined on worries that retrospective taxation could lead to foreign portfolio outflows.

Fresh fears over the impact of retrospective taxation rattled foreign investors and Indian markets on Monday, traders said, as stocks fell for a fourth consecutive day and the rupee hit it’s weakest in more than a month.

Foreign investors, key to Indian shares hitting record highs in March, have bought shares worth $6.38 billion in 2015 so far, in addition to $16.2 billion worth of inflows in 2014.

The benchmark BSE index closed 1.95 per cent lower, while the broader NSE index fell 1.83 per cent, marking their steepest single-day decline since March 26.

A weak start to the January-March earnings season with Tata Consultancy Services and Reliance Industries earnings failing to enthuse investors, also weighed on sentiment.

Of 30 BSE index stocks, 28 ended lower while two gained.