The Nifty fell about 1 percent on Monday to a seven-month low, erasing its gain for the year, sicne investors worried that the government may impose long-term capital gains tax. However, Finance Minister Arun Jaitley assured investors saying that the government does not plan to impose a long-term capital gains tax.
Indian shares were headed for an eighth consecutive session of declines in nine in the midst of concern over outflows from emerging markets to the United States and continued concerns about India’s move to ban higher-value currency notes.
Asian markets were trading mixed sentiments. China’s Shanghai Composite index fell 0.84 percent to 3,279 on Monday morning. Japan’s Nikkei fell 0.09 percent to 19,412. Major global markets remained closed on account of Christmas.
The Dow Jones advanced 14.86 points to close at 19,933.74. The S&P500 rose 2.75 points to settle at 2,263.71, while the Nasdaq Composite added 15.27 points to finish at 5,462.69.
Wall Street ended the week on a positive note on Friday, as investors doubled down on a rally triggered by optimism that President-elect Donald Trump’s policies will revamp the economic growth.
The NSE Bank index fell as much as 1.55 percent to its lowest since June 29. Consumer and material stocks also pulled down the indexes with the Nifty Metal index shedding about 2.80 percent to its lowest in over a month. In another sign of worries in markets, the NSE’s India Volatility index surged 8.3 percent.