Sensex sinks 2.33% and 395 points to close at 16518 retracing all it’s misplaced elation yesterday on deferment of GAAR

Sensex sinks 2.33% and 395 points to close at 16518  at 3.30 pm,although the adjusted close is down 366 points at 16546…..retracing all it’s misplaced elation yesterday on deferment of General Anti Avoidance Rules (GAAR)

Yesterday the Sensex showed a remarkable bounceback from negative to positive to close near 17000 at 16913 just because FM Pranab Mukherjee announced that he was deferring the GAAR by a Year and putting the onus on the IT Authorities to prove tax avoidance

It was like the FM warning FIIs and those who misuse Double Taxation Avoidance Agreements (DTAA)

” Alright I won’t kill you’ll this year but will do so next year !”

…and the Market responded by applauding this lease of Life for a year more !…pretty misplaced

India has DTAAs with 82 countries….Without hiding behind  any DTAA,especially with the one with Mauritius coming under Review,FIIs are now exposed….having to lose their tax advantage which acted as a strong cushion given they had to contend with the  Rupee Depreciation too

Today reality sunk in and the whole bounce back was retraced back to 16500 levels…helped along also by Deputy Governor of RBI stating that with Oil Prices & Inflationary Pressures remaining high,it would be difficult to lower Interest rates further

All 30 Sensex Stocks closed in the Red with those highlighted in Bold Red Below being the hardest hit and interestingly all favourites too…and that’s an ominous sign for further falls

SENSEX 16546 (- 366) ~SENSEX Stocks

Code

Scrip Name

LTP

% Ch.

532977

Bajaj Auto

1493.95

-1.42

532454

Bharti Airtel

314.20

-0.38

500103

BHEL

216.15

-4.86

500087

Cipla

324.95

-0.58

533278

Coal India

334.90

+2.04

532868

DLF

190.05

+0.16

532155

Gail India

324.00

+1.63

500010

HDFC

658.40

-0.78

500180

HDFC Bank

515.45

-3.14

500182

Hero MotoCorp

1897.40

-3.04

500440

Hindalco Inds

117.40

+1.16

500696

Hindustan Unilever

431.05

+0.29

532174

ICICI Bank

830.30

-2.05

500209

Infosys

2391.95

-1.59

500875

ITC

227.30

-3.97

532286

Jindal Steel

484.70

-3.29

500510

L&T

1158.40

-3.70

500520

Mahindra & Mahindra

676.90

-2.05

532500

Maruti Suzuki

1303.05

-0.89

532555

NTPC

156.00

-0.29

500312

ONGC

258.10

-1.19

500325

RIL

708.65

-0.93

500112

SBI

1958.95

-3.32

500900

Sterlite Inds

99.00

-3.46

524715

Sun Pharma

595.70

-0.71

500570

Tata Motors

296.35

-3.88

500400

Tata Power

99.10

-2.60

500470

Tata Steel

427.35

-3.23

532540

TCS

1200.35

-5.77

507685

Wipro

404.15

-1.89

The May Meltdown is On… !