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Nifty to open with deep Red on Mauritius tax treaty

Nifty to open with deep Red on Mauritius tax treaty

Indian shares are expected to open deep in the red after the Indian government amended a long-standing tax treaty with Mauritius that plugs loopholes in the system and aims to check tax evasion. At the time of writing, the SGX Nifty in Singapore was down 96 points, or 1.23 percent, to 7,823. Globally, most shares were trading higher tracking a strong close on Wall Street overnight. But the amendment to the Mauritius Double Tax Avoidance Agreement, which comes into effect April 1, 2017, will give India the right to tax capital gains from investments coming from the tax haven. Tax lawyers said that while the move may have a short-term negative impact on market sentiment, given the fact that about USD 33 billion of inflows come into India via the controversial participatory-notes route, more sharing of information would be a long-term positive. In other news, SpiceJet would be in news after the BSE told the High Court it cannot allow warrants to be issued in the name of erstwhile promoter Kalanithi Maran -- a move that would have given him 25 percent stake in the carrier. Telecom stocks will be in focus as the Supreme Court readies to pronounce verdict on the important call-drop penalty today at 11 am. In earnings, important companies to report numbers today include Kotak Mahindra Bank, Asian Paints, Havells and Apollo Tyres.


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